Based on the Following Account Balances, What Is the Total

question 51

Multiple Choice

Based on the following account balances, what is the total shareholders' equity?

• A)$620,000
• B)$800,000
• C)$820,000
• D)$850,000

---

Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory, used to calculate cost of goods sold and ending inventory.

First-In, First-Out

An inventory valuation method where the oldest items in inventory are sold or used first.

Equivalent Units

A concept in cost accounting used to calculate the work done on partially completed goods, expressed in terms of fully completed units.

Cost Reconciliation Report

A document used to reconcile and verify the costs incurred by a department or project against the budgeted or expected costs.