Metro Computer Company Had the Following Balances and Transactions During

question 73

Multiple Choice

Metro Computer Company had the following balances and transactions during 2014. $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 100 \text { units at } \$ 75 \\\hline \text { March } 10 & \text { Sold } 50 \text { units } \\\hline \text { June } 10 & \text { Purchased } 200 \text { units at } \$ 80 \\\hline \text { October 30 } & \text { Sold } 150 \text { units } \\\hline\end{array}$$
-What would the Inventory amount be as reported on the balance sheet at December 31,2014 if the perpetual average-costing method is used? (Answers are rounded to the nearest dollar.)

• A) $7,900
• B) $8,600
• C) $8,000
• D) $7,750

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Definitions:

Market Risk Premium

The increased earnings expected by an investor for choosing a risky market portfolio over assets with no risk.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Selling

The process or act of offering goods or services in exchange for money or other compensation.

Tax Rate

The percentage at which an individual or corporation is taxed, with the rate often varying based on income or profit levels.