Using the Following Partial Table of Present Value of $1

question 12

Multiple Choice

Using the following partial table of present value of $1 at compound interest,determine the present value of $50,000 to be received 3 years hence with earnings at the rate of 12% a year: ​
​

• A) $37,550
• B) $31,800
• C) $35,600
• D) $39,850

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Definitions:

Weighted-Average Method

The weighted-average method is used in accounting to average cost flows for inventory valuation and cost of goods sold calculation, considering the weighted average of all units available for sale.

Process Costing System

An accounting methodology used to allocate costs to products that are similar and produced continuously.

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale, used to determine the cost of goods sold and ending inventory.

Mixing Department

A specific section within a manufacturing setup where materials are combined to produce a product.