Fairchild Pty Ltd Began April with a Finished Goods Inventory

question 18

Multiple Choice

Fairchild Pty Ltd began April with a finished goods inventory of $25 000. The cost of goods manufactured during the month was $40 000 and the cost of goods sold during April was $50 000.
The inventory remaining in finished goods at the end of April was:

• A) $35 000.
• B) $25 000.
• C) $20 000.
• D) $15 000.

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Definitions:

Ratio

A mathematical expression that compares two or more quantities, showing the relative sizes of two or more values.

Simplify

The process of reducing an expression or equation to its simplest form, making it easier to work with.

Percent

A percent is a part per hundred, used as a way of expressing a number as a fraction of 100.

Perimeter

The total distance around the boundary of a two-dimensional shape.