Use This Information to Answer the Following Question

question 5

Multiple Choice

Use this information to answer the following question. A periodic inventory system is used; ending inventory is 150 units.
What is ending inventory under the average-cost method?

• A)$900
• B)$1,050
• C)$1,350
• D)$1,200

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Definitions:

Investment by Owner

The contribution of cash or other assets by an owner into their business, increasing the equity of the company.

Deficit

The amount by which expenses surpass income or revenues, resulting in a loss.

Retained Earnings

Profits that a company has reinvested in itself rather than paying out to shareholders as dividends.

Comprehensive Income

This term includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.