The Following Units of an Inventory Item Were Available for Sale

question 56

Multiple Choice

The following units of an inventory item were available for sale during the year: The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory using average cost is:

• A) $1,353
• B) $1,263
• C) $1,375
• D) $1,150

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Definitions:

Total Liabilities

The aggregate of all debts and financial obligations owed by a company to external entities at any point in time.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim against the company's assets.

Total Assets

The sum of all assets owned by a company, including current, non-current, tangible, and intangible assets, reflected on the balance sheet.

Period Of Time

A period of time is a specified duration or a length of time during which events, processes, or conditions occur or continue.