Ace Systems, Inc On 28 January, Ace Systems Sells 18 Units (10 Units

question 38

Multiple Choice

Ace Systems, 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:
$\begin{array}{lcccc} & \text { Quantity } &\text { Unit Cost } & \text { Total Cost } \\\text { Beginning inventory (1 Jan.) } & 10&\$ 27.50 & \$ 275 \\\text { Purchase (15 Jan.) } & 15 & \$ 28.00 & \$ 420 \\\text { Purchase (23 Jan.) } & \underline{5} & \$ 29.00 & \$ 145 \\\quad \text { Total } & \underline{30}&& \underline{\$ 840}\end{array}$
On 28 January, Ace Systems sells 18 units (10 units from beginning inventory, 4 units from 15 Jan purchase, and 4 units from 23 Jan purchase) of this product. The other 12 units remain in inventory at 31 January.


-Assuming that Ace Systems uses the weighted average cost flow assumption, the 12 units of this product in inventory at 31 January have a total cost of:

• A) $499.
• B) $336.
• C) $509.
• D) Some other amount.

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Definitions:

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Labour

It is the human effort, physical or mental, contributed towards the production of goods and services.

Learning Curve

The concept that with more experience or production, efficiency is typically increased, and the cost per unit decreases.

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A major global industry that involves the production and sale of steel, a critical material used in construction, automotive manufacturing, and infrastructure.