Ramos Company ordered 500 toy wagons from Lamar, Inc.on May 1, 2010.Ramos Company paid for them on May 20 at a cost of $2 each.Ramos sold 50 of them on June 2, 2010, for $5 each to Gilloz Company.Gilloz Company paid Ramos on June 10.
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Which amount represents Ramos Company's input markets related to this sale?
A) $300
B) $1,000
C) $1,700
D) $250

Question

Quizplus · Accepted Answer

Ramos Company's input market cost is the cost of purchasing the toy wagons, which is 500 wagons at $2 each, totaling $1,000.

Ramos Company Ordered 500 Toy Wagons from Lamar, Inc