Twenty Units of Inventory on Hand at the End of the Year

question 133

Multiple Choice

Twenty units of inventory on hand at the end of the year are recorded at their cost of $5.00 per unit using FIFO.Current replacement cost is $4.50 per unit.What amount would be reported as inventory on the balance sheet?

• A) $100.00
• B) $5.00
• C) $4.50
• D) $90.00

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Definitions:

Expected Value

The sum of all possible values each multiplied by its probability of occurrence.

Binomial Distribution

A probability distribution that models the number of successes in a fixed number of independent Bernoulli trials with the same probability of success.

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically containing one or more variables.

Binomial Experiment

A statistical experiment that has exactly two possible outcomes for each trial and a fixed number of trials.