Mogul ships inventory with a cost of $80,000 to Ski Outfit and pays shipping costs of $8,000. By the end of the year, $60,000 of the merchandise has been sold to customers for a total of $85,000. Mogul allocates $6,000 of the shipping costs to inventory sold and the other $2,000 to inventory not sold. Mogul also paid advertising costs during the year of $16,000. What amount of inventory will Mogul report at year end?

Multiple Choice

A $44,400.

B $20,000.

C $60,400.

D $24,400.

Question

Business

Cortez Rangel

9 March, 10:56

Mogul ships inventory with a cost of $80,000 to Ski Outfit and pays shipping costs of $8,000. By the end of the year, $60,000 of the merchandise has been sold to customers for a total of $85,000. Mogul allocates $6,000 of the shipping costs to inventory sold and the other $2,000 to inventory not sold. Mogul also paid advertising costs during the year of $16,000. What amount of inventory will Mogul report at year end?

Multiple Choice

A $44,400.

B $20,000.

C $60,400.

D $24,400.

+3

Answers (1)

Know the Answer?

Mullins · Answer 1

D $22,000.

Explanation:

Mogul ships inventory

Cost of goods = $80,000+$8,000=$88,000

Cost of goods old = $60,000+$6,000=$66,000

Inventory = $88,000-$66,000

=$22,000

Therefore the amount of inventory will Mogul report at year end will be $22,000