Use the Following Information for Questions $\text { Following information was available from the inventory records of Queen Company for July: }$

question 132

Multiple Choice

Use the following information for questions. $\text { Following information was available from the inventory records of Queen Company for July: }$
$\begin{array}{lrrr}&\text { Units }& \text { Unit Cost }& \text { Total.Cost }\\\text { Balance at July 1 } & 30,000 & £ 9.00 & £ 270,000 \\\text { Purchases: } & & & \\\quad \text { July 6 } & 20,000 & 10.20 & 204,000 \\\text { January 26 } & 27,000 & 10.40 & 280,800\end{array}$

$\begin{array}{cc}\text { Sales: }\\\text { July } 7 &(25,000) \\\text { July } 31 &\underline{(40,000) } \\\text { Balance at July } 31 &\underline{\underline{ 12,000}}\end{array}$
-What is Queen's cost of goods available for sale?

• A) \( £ 77,000 \).
• B) \( £ 284,800 \).
• C) \( £ 754,800 \).
• D) cannot be determined.

Understand and calculate weighted averages for forecasting purposes.

Apply knowledge of forecasting methods to interpret and evaluate sales data.

Understand and apply the accounting equation and its components (assets, liabilities, equity).

Analyze and prepare basic financial statements (income statement, balance sheet, statement of retained earnings).

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Definitions:

Share

A unit of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.

Salary

Regular payment from an employer to an employee, often expressed on an annual basis.

Capital Balances

Represent the amount of funds contributed by owners plus retained earnings in a company's equity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.