As a Result of a Thorough Physical Inventory, Horace Company

question 106

Multiple Choice

As a result of a thorough physical inventory, Horace Company determined that it had inventory worth $320,000 at December 31, 2018. This count did not take into consideration the following facts: Herschel Consignment currently has goods worth $47,000 on its sales floor that belong to Horace but are being sold on consignment by Herschel. The selling price of these goods is $75,000. Horace purchased $22,000 of goods that were shipped on December 27, FOB destination, that will be received by Horace on January 3. Determine the correct amount of inventory that Horace should report.

• A) $320,000.
• B) $340,000.
• C) $367,000.
• D) $387,000.

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Definitions:

Average Time

The mean value calculated by dividing the sum of all time intervals by the number of intervals.

Hold Times

The duration an entity (such as a caller in a queue or a product within a process) waits before the next action in a sequence is taken.

Test Statistic

A value calculated from sample data used to decide whether to reject the null hypothesis in statistical hypothesis testing.

Average Monthly Cost

The mean expenditure incurred per month over a specified period, often used for budgeting and planning purposes.