A Company Completed the Following Transactions in the Order Given

question 57

Multiple Choice

A company completed the following transactions in the order given in its first year of operations: $\begin{array} { | l | l | l | } \hline \text { Transaction } & \text { Units } & \text { Unit Costs } \\\hline \text { Purchase } & 300 & \$ 4.00 \\\hline \text { Purchase } & 200 & 4.20 \\\hline \text { Sales (@ \$8.00) } & 280 & \\\hline \text { Purchase } & 400 & 4.40 \\\hline \text { Sales (@ \$8.00) } & 360 & \\\hline\end{array}$
Using the weighted-average inventory cost method (rounding each calculation to the nearest cent) the gross margin would be:

• A) $2,463.78
• B) $2,422.84
• C) $2,433.20
• D) $2,376.00

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Definitions:

Isoquants

Curves that represent combinations of various inputs which yield the same level of output.

Isocost Lines

Graphical representations in economic theory that showcase all possible combinations of inputs that can be purchased for a given total cost.

Isocost Line

A visual depiction in economics indicating every potential mix of inputs that have an identical overall cost.

Cost Of Capital

The total cost of funds used for financing a business, which may include debt and equity financing costs.