Santa Fe Tile Company Had the Following Inventory Purchases and Sales

question 100

Multiple Choice

Santa Fe Tile Company had the following inventory purchases and sales during the month of May. The company uses the periodic inventory method. If Santa Fe uses average-cost, how much was the Ending inventory balance?

• A)$2.980
• B)$2,480
• C)$2,715
• D)$2,930

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Definitions:

Ordinary Shares

Securities that represent ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.

Trade Creditors

Amounts owed by a business to its suppliers for goods and services purchased on credit.

Liquidator's Remuneration

Compensation paid to a liquidator for carrying out the process of winding up a company, including selling off assets, paying creditors, and distributing any remaining funds to shareholders.