Portland Ltd What Is the Estimated Dollar Value of the Inventory at March

question 89

Multiple Choice

Portland Ltd. estimates the cost of its physical inventory at March 31 for use in its interim financial statements. The rate of markup on cost is 25%. The following account balances are available: $\begin{array}{ll}\text { Inventory, March } 1 & \$ 200,000 \\\text { Purchases } & 168,000 \\\text { Purchase returns } & 7,000 \\\text { Sales during March } & 350,000\end{array}$
What is the estimated dollar value of the inventory at March 31?

• A) $18,000
• B) $175,000
• C) $81,000
• D) $368,000

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Definitions:

Equal Satisfaction

A situation or outcome in consumer behavior where an individual achieves the same level of utility or happiness from different combinations of goods or services.

Indifference Curve

A graph showing combinations of goods among which a consumer is indifferent, representing equal levels of satisfaction or utility.

Budget Line

Represents all possible combinations of goods and services a consumer can purchase with a specific budget, given the prices of those goods and services.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.