The Constance Corporation’s inventory at December 31, 2021, was $127,500 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following: Merchandise costing $17,500, shipped f. o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022. Merchandise costing $47,500 was shipped to a customer f. o.b. shipping point on December 28, 2021, arrived at the customer’s location on January 6, 2022. Merchandise costing $23,500 was being held on hand for Jess Company on consignment. Estimated sales returns are 20% of annual sales. Sales revenue was $555,000 with a gross profit ratio of 30%.
What amount should Constance Corporation report as inventory in its December 31, 2021, balance sheet?
Multiple Choice
a. $160,250
b. $145,250
c. $187,250
d. $190,250

Option A is correct.

$160,250

Explanation:

Estimated sales return inventory = $550,000 x 10%x (100%— 25%)

Estimated sales return inventory = $41,250  

Amount of inventory = $125,000+ $15,000 — $21,000+ $41,250  

Amount of inventory =  $160,250

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'