Ending Inventory Is Equal to the Cost of Items on Hand

question 158

Multiple Choice

Ending inventory is equal to the cost of items on hand plus:

• A) Items in transit sold f.o.b. shipping point.
• B) Purchases in transit f.o.b. destination.
• C) Items in transit sold f.o.b. destination.
• D) None of these answer choices is correct.

---

Definitions:

Population Standard Deviation

A measure of the dispersion or variability in a population data set.

Confidence Interval

A range of values, derived from sample data, that is believed to contain the true population parameter with a certain level of confidence.

Sample Mean

The mean of all data points within a sample, utilized to approximate the mean of the entire population.

After-Tax Profit

The net profit of a company after all taxes have been deducted from revenues.