Given the Following Items and Costs as of the Balance

question 103

Multiple Choice

Given the following items and costs as of the balance sheet date,determine the value of Faltron Company's merchandise inventory. - $1,000 goods sold by Faltron to another company.The goods are in transit and shipping terms are FOB destination.
- $2,000 goods sold by another company to Faltron.The goods are in transit and shipping terms are FOB destination.
- $3,000 owned by Faltron but in the possession of another company,the consignee.
- Damaged goods owned by Faltron that originally cost $4,000 but now have a $500 net realizable value.

• A)$10,000
• B)$6,500
• C)$5,500
• D)$5,000
• E)$4,500

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Definitions:

Molasses

A thick, dark syrup that is a byproduct of sugar refining, used in baking, as a sweetener, or in the fermentation of alcohol.

Constrained Machine

A piece of equipment within a manufacturing process that limits the total output due to its capacity or throughput level.

Constrained Resource

A limiting factor or scarce resource that restricts the output or productivity of a manufacturing or business process.

Profitable Product

A product that generates revenue exceeding its costs of production and distribution, leading to a profit.