A Listing of the Montez Company's Inventory Items at the End

question 31

Multiple Choice

A listing of the Montez Company's inventory items at the end of 2010 totals $95, 000.Included in this amount are the following items: $\text { Merchandise in transit as of } 12 / 31 / 2010 \text { purchased FOB }$
$\begin{array}{ll}\text { shipping point } & \$ 6,800 \\\text { Goods held by Montez as consignee from Nirvana } & 5,000 \\\text { Goods out on consignment, at cost plus } 50 \% \text { markup on cost } & 6,000\end{array}$
What is the dollar amount of Montez's 2010 ending inventory that should be reported on the balance sheet?

• A)$83, 100
• B)$86, 200
• C)$87, 900
• D)$88, 000

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Definitions:

Initial Model

The first or preliminary version of a model that provides a basic framework for understanding or representing a concept or system.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, contraction, and trough.

Expansion Phase

Refers to the period in a business cycle or economy where growth and production increase and the overall economic activity rises.

Employment

A formal relationship between an individual and an employer where the individual performs tasks in exchange for compensation, such as salary or wages.