Shandy Shutters Has the Following Inventory Information

question 60

Multiple Choice

Shandy Shutters has the following inventory information. A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand.Assume a periodic inventory system is used.Assuming that the specific identification method is used and that ending inventory consists of 15 units from each of the three purchases and 5 units from the November 1 inventory, cost of goods sold is

• A)€320.
• B)€643.
• C)€640.
• D)€627.

Distinguish between the concepts of economic profits in the short run and long run across different market structures.

Appreciate the role of consumer surplus and how it is affected by market structures and pricing strategies.

Interpret demand elasticity for firms in monopolistic competition relative to perfect competition and monopoly.

Understand the criteria for monopolistic competition and the concept of perfect price discrimination.

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Definitions:

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period, ensuring compliance with the accrual basis of accounting.

Allowances for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect the portion that is estimated not to be collected.

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the costs necessary to make the sale.

Bad Debt Expense

A provision for accounts receivable that are considered unlikely to be collected.