Metro Computer Company Had the Following Balances and Transactions During

question 27

Multiple Choice

Metro Computer Company had the following balances and transactions during 2016: $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 280 \text { units at } \$ 71 \\\hline 10 \text { March } & \text { Sold } 70 \text { units } \\\hline 10 \text { June } & \text { Purchased } 1120 \text { units at } \$ 78 \\\hline 30 \text { October } & \text { Sold } 100 \text { units } \\\hline\end{array}$$ What would the company's ending inventory amount be on 31 December 2016 if the perpetual last-in,first-out costing method is used?

• A)$94,470
• B)$87,360
• C)$19,880
• D)$107,240

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Definitions:

Bonds Payable

A long-term liability representing borrowed funds that a company is obligated to repay to bondholders, generally with periodic interest payments.

Premium on Bonds Payable

This refers to the amount by which the bond's selling price exceeds its face value.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet, income statement, and cash flow statement.

Assets

Resources owned or controlled by a company that are expected to produce economic value or future benefits.