Assume That the Total Inventory on Hand at the End

question 61

Multiple Choice

Assume that the total inventory on hand at the end of the year as determined by taking a physical inventory is $62,000. Of the $62,000, $8,000 has been sold FOB destination and is awaiting pickup by the carrier. What is the cost of inventory reported on the balance sheet?

• A) $70,000
• B) $62,000
• C) $58,000
• D) $54,000

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Definitions:

Ounce of Gold

A unit of measure for weighing gold, where one ounce is equivalent to approximately 28.35 grams.

Coffee Beans

The seed of the coffee plant, used to produce the popular beverage coffee, following a process of drying, roasting, and grinding.

Essential

Refers to goods or services considered necessary for basic human functioning and living standards.

Marginal Rate of Substitution

The speed at which a consumer is ready to replace one product with another, keeping their level of contentment constant.