DVDs Usually Sell for $14 Per Unit, and Have a Profit

question 96

Multiple Choice

DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has fallen to $7 per unit. The Movie Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the inventory at the lower of cost and net realizable value.

• A) $1,350
• B) $1,400
• C) $1,500
• D) $1,800
• E) $2,000

Understand the need for and process of bank account reconciliation.

Recognize the documentation involved in cash disbursements and receipts, including invoices, purchase requisitions, and vouchers.

Understand the impacts of outstanding checks, deposits in transit, and other reconciling items on the bank reconciliation process.

Learn how the petty cash fund is established, reimbursed, and the journal entry involved in its replenishment.

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Definitions:

Cumulative Relative Frequency

A measure used in statistics to represent the sum of relative frequencies up to a certain class or level.

Electronics Company

A business entity that specializes in the manufacture, design, marketing, or sale of electronic goods and devices.

Employees

Individuals who are hired by employers to perform specific jobs in exchange for compensation, forming the workforce of a business or organization.

Car Dealer

A business that specializes in selling new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.