Per Its January 31, 2015 Physical Inventory Count, Pugwash Company

question 8

Multiple Choice

Per its January 31, 2015 physical inventory count, Pugwash Company has $24,500 in inventory on hand at year end. In addition, at year end the company has $1,200 in merchandise in transit purchased from a supplier shipped FOB destination. Included in its physical inventory is $900 in goods held on consignment from a local manufacturer. How much inventory should be reported on the company's January 31, 2015 balance sheet?

• A) $24,500
• B) $25,700
• C) $24,800
• D) $23,600

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Definitions:

Epiphysis

The end part of a long bone, initially growing separately from the shaft but later merging to form a complete bone.

Periosteum

A dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.

Diaphysis

The main or central shaft of a long bone.

Articular Cartilage

The smooth, white tissue that covers the ends of bones where they come together to form joints, facilitating smooth movement.