Table 6-6 Sam's Wholesale Bikes -Refer to Table 6-6

question 127

Multiple Choice

Table 6-6 Sam's Wholesale Bikes $\begin{array} { | l | l | } \hline \text { January } 1 \text { inventory balance } & 15 \text { units at } \$ 350 \text { per unit } \\\hline \text { January } 4 \text { purchase } & 50 \text { units at } \$ 375 \text { per unit } \\\hline \text { January } 15 \text { sale } & 40 \text { units at } \$ 550 \text { per unit } \\\hline \text { February } 8 \text { purchase } & 80 \text { units at } \$ 405 \text { per unit } \\\hline \text { February } 15 \text { sale } & 70 \text { units at } \$ 550 \text { per unit } \\\hline\end{array}$
-Refer to Table 6-6. What is the value of the February ending inventory assuming that Sam's uses the periodic FIFO inventory method?

• A)$7,500
• B)$17,500
• C)$14,175
• D)$15,875

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Definitions:

Average Fixed Costs

Production's steady costs, unchanged by the amount of production, divided across the output quantity.

Total Variable Costs

The overall expenses that vary directly with the level of production output, such as raw materials and labor.

Marginal Cost

The escalation of full cost associated with manufacturing an additional unit of a good or service.

Output

The amount of products or services that a company, sector, or nation generates over a specific period of time.