Use the Information Below to Answer the Following Questions

question 20

Multiple Choice

Use the information below to answer the following questions:
At 1 July 2011, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2012, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15,000.
-What was the value of inventory in the balance sheet at 30 June 2012?

• A) $22 500
• B) $10 000
• C) $7500
• D) $12 500.

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Definitions:

Business-Specific

Business-specific refers to elements, strategies, or characteristics that are unique or pertinent to a particular company or industry.

Market Components

The different elements that make up a financial market, including stocks, bonds, currencies, commodities, and derivatives.

Expected Returns

The anticipated return on an investment, estimating the average of probability-weighted returns for a given asset.

Probability Distribution

A probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.