Beech Soda, Inc On 14 January, Beech Soda, Inc

question 102

Multiple Choice

Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases during the month of January were as follows:
$\begin{array} { | l | c | c | c | } \hline & \text { Quantity } & \text { Unit Cost (\$) } & \text { Total Cost (\$) } \\\hline \text { Beginning inventory (1 Jan) } & 16 & 10 & 160 \\\hline \text { Purchases (11 Jan.) } & 14 & 12 & 168 \\\hline \text { Purchase (20 Jan.) } & 23 & 15 & \underline { 345 } \\\hline \text { Total } & 53 & & 673 \\\hline\end{array}$
On 14 January, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at 31 January.


-Assuming that Beech Soda uses the weighted average cost flow assumption, the cost of goods sold to be recorded at 14 January is (round cost per unit to nearest cent) :

• A) $317.50.
• B) $308.25.
• C) $273.25
• D) $673.00.

Understand the principle of marginal analysis in the context of common resource use and market failure.

Recognize the economic rationale behind charging congestion fees and other similar mechanisms to mitigate negative externalities.

Determine the efficient level of production and consumption in the presence of external costs and benefits.

Understand the concepts of artificially scarce goods and natural monopolies, including their cost structures.