Use the Information Below to Answer the Following Question(s)

question 140

Multiple Choice

Use the information below to answer the following question(s) .Movie Time is a distributor of DVDs.Video Mart is a local retail outlet which sells blank and recorded DVDs.Video Mart purchases DVDs from Movie Time at $5.00 each; the units are shipped in packages of 25.Movie Time pays all incoming freight, and Video Mart does not inspect the DVDs due to Movie Time's reputation for high quality.Annual demand is 104,000 DVDs at a rate of 2,000 units per week.Video Mart earns 15% on its cash investments.The purchase order lead time is one week.The following cost data are available:

-What are the total relevant inventory costs?

• A)$6,150.50
• B)$4,182.56
• C)$2.560.20
• D)$1,951.70
• E)$2,462.41

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Definitions:

Department of Labor

A US government department responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics.

Disclaimer

In employment law, a statement that regardless of provisions or policies in an employment handbook and regardless of oral promises to the contrary, an employment-at-will situation still exists between an employer and its employees. In the accounting profession, a statement declaring that an auditor has decided not to give any opinion on a firm’s financial records.

Exempt Employee

An employee who is exempt from overtime pay and minimum wage requirements, typically based on their job duties and salary level.

FLSA

The Fair Labor Standards Act, a US labor law that sets out minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.