Rodriguez Company Had the Following Balances and Transactions During 2015

question 77

Multiple Choice

Rodriguez Company had the following balances and transactions during 2015: What would the Ending Merchandise Inventory amount be as reported on the balance sheet at December 31, 2015 if the perpetual first-in, first-out costing method is used?

• A)$4,000
• B)$16,400
• C)$8,200
• D)$8,000

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Definitions:

Net Sales

Sales revenue minus deductions for returns, allowances for damaged or missing items, and discounts.

Semiannually

Occurring twice a year or every six months, often used in the context of payments, interest accrual, or reporting periods.

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.