[The Following Information Applies to the Questions Displayed Below

question 49

Multiple Choice

[The following information applies to the questions displayed below.]
Harding Systems,Inc.uses a periodic inventory system.The purchases of a particular product during the year are shown below:
At December 31 the ending inventory consisted of 1,500 units.
-Compute the cost of the ending inventory based on the average-cost method of inventory valuation.(Round your final answer to the nearest dollar value. )

• A)$14,512
• B)$11,694
• C)$29,560
• D)$28,450

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Definitions:

Completed-Contract

Completed-contract method is an accounting technique used to recognize the revenues and expenses of long-term projects only upon their completion.

Percentage-of-Completion

A method of revenue recognition in accounting where revenue and expenses are recognized as a project progresses, based on the percentage of work completed.

Revenue Recognition

The accounting principle that dictates the process and timing by which revenue is recorded and recognized as income on the financial statements.

Specific Industry Guidance

Regulations and recommendations tailored to the operating practices and challenges of particular sectors.