Assuming That Beech Soda Uses the Average Cost Flow Assumption

question 33

Multiple Choice

Assuming that Beech Soda uses the average cost flow assumption, the cost of goods sold to be recorded at January 14 is (round cost per unit to nearest cent) :

• A) $317.50.
• B) $308.25.
• C) $273.33
• D) $673.00.

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Definitions:

Convertible Bond

This bond variant grants the holder the option to exchange it for a fixed amount of the issuer's stock at specific intervals during the bond's duration, typically based on the bondholder's decision.

Straight Bond Value

Straight bond value is the value of a bond that pays fixed interest payments until maturity and repays the principal at maturity without any special features such as convertibility or callability.

Call Value

The price at which a bond or other debt security can be redeemed by the issuer before its maturity date.

Exercise Price

The stipulated price per share at which the holder of a stock option is entitled to buy or sell the stock.