Pettis Needs to Determine Its Year-End Inventory

question 166

Multiple Choice

Pettis needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and cannot be sold. Another 2,000 units, shipped FOB shipping point, are in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Pettis include in its year-end inventory?

• A) 29,000
• B) 21,000
• C) 23,000
• D) 19,000
• E) 26,000

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Definitions:

Prime Mover

The initial mechanical source of motive power. In the context of a hydraulic circuit, the means used to drive the hydraulic pump would be properly the prime mover, although the term is sometimes used to describe the pump itself.

Hydraulic

Hydraulic systems use pressurized fluid to power devices or machinery, transferring energy through the controlled movement and pressure of a liquid, typically oil or water.

Mechanical Force

A push or pull action resulting from the interaction of physical objects, which can cause an object to move, stop, or change direction.

Torque Converter

A type of fluid coupling that allows the engine to spin somewhat independently of the transmission, used in automatic transmissions to improve smoothness.