A Company Starts the Period with 100 Computers in Inventory,purchases

question 6

Multiple Choice

A company starts the period with 100 computers in inventory,purchases 30 more,returns 4 of them to suppliers,and has 83 in inventory at the end of the period.If there is no shrinkage,how many computers were sold?

• A)47 computers.
• B)43 computers.
• C)17 computers.
• D)83 computers.

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Definitions:

FIFO Method

An accounting method where the first items added to inventory are the first ones to be sold or used.

Equivalent Units

A concept used in cost accounting to express the amount of work done by manufacturers in terms of fully completed units of output.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.

Operational Costing

The method of calculating the expenses associated with the day-to-day running of a business, including costs of manufacturing and services.