A Manufacturing Company Recorded the Following Data Pertaining to Raw

question 47

Multiple Choice

A manufacturing company recorded the following data pertaining to raw material X: $\begin{array} { | l | l | l | } \hline & \text { Units Received } & \text { Cost } \\\hline 1 / 1 / 2001 \text { Inventory } & 400 & \$ 1.00 \\\hline 1 / 8 / 2001 \text { Purchase } & 600 & \$ 1.10 \\\hline 1 / 12 / 2001 \text { Issue } & 800 & \$ 2.00 \\\hline\end{array}$
The weighted average unit cost of raw material X at January 12, 2001 for use in costing is:

• A) $1.00
• B) $1.05
• C) $1.06
• D) $1.10

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Definitions:

Price-Elasticity Of Demand

An indicator gauging the change in demand for an item in response to price fluctuations.

Law Of Demand

The principle that there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.

Price Elasticity

A parameter that indicates the extent to which demand for a good is influenced by its price changes.

Demand Schedule

A table showing the quantity of a good or service that consumers are willing to buy at various prices.