The Following Information Is Available from the Adjusted Trial Balance

question 146

Multiple Choice

The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Sue Harris, Capital account?

$\begin{array} { l r } \text { Total revenues } & \$ 125,000 \\\text { Total expenses } & 60,000 \\\text { Sue Harris, Capital } & 80,000 \\\text { Sue Harris, Withdrawals } &15,000\end{array}$

• A) $130,000.
• B) $65,000.
• C) $80,000.
• D) $280,000.
• E) $145,000.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.

Weighted-Average Method

An inventory costing method in which the cost of goods available for sale is divided by the total units available for sale, resulting in a weighted average cost per unit.

Process Costing System

An accounting system used to accumulate costs in industries where production is continuous and units are indistinguishable from one another.

Conversion Costs

Costs required to convert raw material into finished goods, primarily comprising labor and overhead expenses.