Rodriguez Company Had the Following Balances and Transactions During 2015

question 120

Multiple Choice

Rodriguez Company had the following balances and transactions during 2015: $$\begin{array} { | l | l | } \hline \text { Beginning Merchandise Inventory } & 100 \text { units at } \$ 80 \\\hline \text { March } 10 & \text { Sold } 50 \text { units } \\\hline \text { June 10 } & \text { Purchased } 200 \text { units at } \$ 82 \\\hline \text { October 30 } & \text { Sold } 150 \text { units } \\\hline\end{array}$$ 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:

Par Value

A nominal value given to a security or stock specified by the issuing company, which may not necessarily reflect its actual market value.

Dividends Payable

A liability account that records the amount of dividends that a company has declared but not yet paid to its shareholders.

Cash

denotes money in the form of currency, including banknotes and coins, which is used to conduct transactions.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders in the company.