Berring Sales Uses the Average-Cost Method

question 19

Multiple Choice

Berring Sales uses the average-cost method.The partially completed inventory record for January appears below. On January 14,the company sold 10 units.On January 29,the company sold 50 units.
-Complete the inventory record through the January 14 sale,and calculate the Inventory balance after the January 14 sale.(Please round to the nearest whole dollar.)

• A) $380
• B) $330
• C) $230
• D) $228

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Definitions:

Interest Expense

Interest expense is a cost incurred by an entity for borrowed funds, reflected on the income statement.

Effective-Interest Method

A method of calculating the interest expense on a bond that factors in the bond's book value and yield to maturity.

Discounted Bond Issue

The sale of bonds for less than their face value, typically to compensate investors for taking on additional risk or for interest rates being higher than the bond's coupon rate.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the compilation of financial statements in the U.S.