YiCo buys 800 cases of tennis balls listed at $130 per case and for which YiCo is given a 15%...
Question:
YiCo buys 800 cases of tennis balls listed at $130 per case and for which YiCo is given a 15% volume discount. YiCo sells 70% of the cases for cash.
The cost of the unsold merchandise is:
a. $15,600
b. $31,200
c. $26,520
d. $77,350
Inventory:
Inventory is the stock of goods a company purchases to resell to the ultimate consumers. The inventory of a manufacturing business differs from the inventory of a merchandising business.
Answer and Explanation: 1
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Correct Answer: Option c. $26,520.
YiCo's unsold merchandise will cost the following amount:
- Cost of merchandise = (Units bought × Price per...
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Inventory Cost: Definition, Methods & Types
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Chapter 6 / Lesson 3
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Learn about inventory cost and see how the different types of inventory costs are broken down. Study the ordering cost, shortage cost, and carrying cost definitions.
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