Deck 6: Merchandising Inventory

Question 1

disclosure principle requires exercising caution in reporting items in the financial statements.

Answer 1

False

Question 2

inventory valuation model does not allow control of inventory by visual inspection?

A) First-in, First-out
B) Last-in, First-out
C) Perpetual inventory method
D) Periodic inventory method

Answer 2

Perpetual inventory method

Question 3

Which of the following appears on the balance sheet for a merchandising company?

A) Beginning inventory
B) Ending inventory
C) Cost of goods sold
D) Gross profit

Answer 3

Ending inventory

Question 4

Which of the following appears on the income statement for a merchandising company?

A) Ending inventory
B) Cost of goods sold
C) Gross profit
D) Both B and C

Question 5

Which of the following does not represent the idea of accounting conservatism?

A) Record an asset rather than an expense
B) Record a liability at the highest reasonable amount
C) Provide for all probable losses
D) Anticipate no gains

Question 6

First-in, First-out inventory costing method is consistent with the physical movement of inventory for most companies.

Question 7

a period of increasing prices, First-in, First-out produces lower cost of goods sold and higher gross profit than Last-in, First-out.

Question 8

a period of increasing prices, many companies prefer Last-in, First-out because it produces higher net income and higher ending inventory.

Question 9

average cost inventory costing method generates cost of goods sold and ending inventory amounts that fall between First-in, First-out and Last-in, First-out amounts.

Question 10

most popular inventory costing method in the United States is the Last-in, First-out method.

Question 11

specific unit cost method of inventory costing is recommended when a business deals in unique inventory items.

Question 12

Average cost is determined by dividing the cost of goods sold by the number of units available.

Question 13

of the following is (are) inventory costing methods allowed by GAAP?

A) Last in first out
B) Average cost
C) Specific unit cost
D) All of the above

Question 14

Under which of the following inventory costing methods is the cost of goods sold based on the average cost of the purchases during the period?

A) Specific unit cost
B) Average cost
C) Last in first out
D) First in first out

Question 15

Which of the following inventory costing methods is the LEAST likely to mimic the actual physical flow of inventory?

A) Specific unit cost
B) Average cost
C) Last in first out
D) First in first out

Question 16

Which of the following inventory costing methods is often adopted when a company sells relatively few costly items?

A) Specific unit cost
B) Average cost
C) Last in first out
D) First in first out

Question 17

Which of the following inventory costing methods is often adopted when a company prefers a "middle of the road" approach, receiving moderate income tax benefits while retaining some financial statement benefits?

A) Specific unit cost
B) Average cost
C) Last in first out
D) First in first out

Question 18

Which method would be used to cost milk and other dairy products?

A) Specific unit cost
B) Average cost
C) Last-in, First-out
D) First-in, First-out

Question 19

Which method would be used to cost two identical automobiles?

A) Last-in, First-out
B) First-in, First-out
C) Average cost
D) Specific unit cost

Question 20

Which method would be used by Best Buy to value electronic technology products?

A) Last-in, First out
B) Specific unit cost
C) Average cost

Question 21

Which method would most likely be used by Kroger to value canned goods for sale?

A) First-in, First-out
B) Last-in, First-out
C) Specific ID
D) Average cost method

Question 22

Company had the following balances and transactions during 2009.
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { March } 10 & \text { sold } 8 \text { units for } \$ 100 \\\hline \text { June } 10 & \text { purchased } 20 \text { units at } \$ 80 \\\hline \text { October } 30 & \text { sold } 15 \text { units for } \$ 100 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31, 2009 balance sheet if the periodic First-in, First-out costing method is used?

A) $554
B) $490
C) $537
D) $560

Question 23

Samson Company had the following balances and transactions during 2009.
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { March } 10 & \text { sold } 8 \text { units for } \$ 100 \\\hline \text { June } 10 & \text { purchased } 20 \text { units at } \$ 80 \\\hline \text { October } 30 & \text { sold } 15 \text { units for } \$ 100 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31, 2009 balance sheet if the periodic Last-in, First-out costing method is used?

A) $560
B) $537
C) $554
D) $490

Question 24

Marble Toys Company's accountant discovers that ending inventory is overstated by $4,000. If the company uses the perpetual inventory method, which of the following is the journal entry to correct the error?

A)
$$\begin{array} { | l | l | l | l | } \hline \text { Cost of goods sold } & & \$ 4,000 & \\\hline & \text { Inventory } & & \$ 4,000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Cost of goods sold } & & \$ 4,000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Purchases } & & \$ 4,000 \\\hline\end{array}$$
D) None of the above

Question 25

Under which of the following inventory costing methods is the cost of goods sold based on the cost of the most recent purchases?

A) Last-in, First-out
B) Specific unit cost
C) Average cost
D) First-in, First-out

Question 26

Sales minus cost of goods sold under all inventory methods yields:

A) gross margin.
B) gross profit.
C) net purchases.
D) both A and B.

Question 27

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 units sold, 300 were from the beginning inventory, 500 from the first purchase, 600 from the second purchase and 200 from the third purchase. The cost of goods sold under specific unit cost would be:

A) $5,280.
B) $5,410.
C) $5,310.
D) $5,312.

Question 28

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The cost of goods sold under First-in, First-out (perpetual inventory) is:

A) $5,410.
B) $5,286.
C) $5,312.
D) $5,310.

Question 29

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The cost of goods sold under Last-in, First-out (perpetual inventory) is:

A) $5,280.
B) $5,312.
C) $5,310.
D) $5,410.

Question 30

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The cost of goods sold under average cost (perpetual inventory) is:

A) $5,280.
B) $5,312.
C) $5,310.
D) $5,410.

Question 31

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The ending inventory under average cost (perpetual inventory) is:

A) $1,998.
B) $2,000.
C) $2,030.
D) some other number.

Question 32

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The ending inventory under Last-in, First-out (perpetual inventory) is:

A) $1,998.
B) $2,000.
C) $2,030.
D) some other number.

Question 33

The following data is available:
$$\begin{array} { | l | l | l | } \hline \text { On hand at start of period } & 400 \text { units } & \$ 3.00 \text { unit cost } \\\hline \text { First purchase } & 600 \text { units } & \$ 3.50 \text { unit cost } \\\hline \text { Second purchase } & 700 \text { units } & \$ 3.30 \text { unit cost } \\\hline \text { Third purchase } & 500 \text { units } & \$ 3.40 \text { unit cost } \\\hline \text { Number of units available for sale } & 2,200 \text { total units } & \\\hline \text { On hand at end of period } & 600 \text { units } & \\\hline \text { Number of units sold during period } & 1,600 \text { sold } & \\\hline\end{array}$$ Of the 1600 items sold, 300 were sold from the beginning inventory, 500 were sold after the first purchase, 600 were sold after the second purchase and 200 were sold after the third purchase. The ending inventory under First-in, First-out (perpetual inventory) is:

A) $1,998.
B) $2,000.
C) $2,030.
D) both First-in, First-out and specific ID have an ending inventory of $2030.

Question 34

Marble Toys Company's accountant discovers that ending inventory is overstated by $4,000. If the company uses the periodic inventory method, which of the following is the journal entry to correct the error?

A)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Cost of goods sold } & & \$ 4,000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Purchases } & & \$ 4,000 \\\hline\end{array}$$ .
C)
$$\begin{array} { | l | l | l | l | } \hline \text { Inventory } & & \$ 4,000 & \\\hline & \text { Purchases } & & \$ 4,000 \\\hline\end{array}$$
D) None of the above.

Question 35

of the following inventory costing methods is often adopted because of income taxes?

A) Specific unit cost
B) Average cost
C) Last-in, First-out
D) First-in, First-out

Question 36

inventory valuation model allows you to control inventory by visual inspection?

A) First-in, First-out
B) Last-in, First-out
C) perpetual inventory method
D) periodic inventory method

Question 37

inventory valuation model maximizes reported income when costs are rising?

A) First-in, First-out
B) Last-in, First-out
C) Average cost
D) Specific unit cost

Question 38

of the following financial statements are affected by the use of the lower-of-cost-or-market rule?

A) The balance sheet
B) The income statement
C) Both the balance sheet and the income statement
D) Neither the balance sheet nor the income statement

Question 39

accountant for a company determines that the 20 units of inventory on hand at the end of the year should be recorded at their cost of $5.00, each using First-in, First-out. Current replacement cost is $4.50. What amount would be reported as inventory on the balance sheet?

A) $100.00
B) $5.00
C) $4.50
D) $90.00

Question 40

December 31 of the current year, the trial balance for a company reports the following amounts:
$$\begin{array} { | l | r | } \hline \text { Cost of goods available for sale } & \$ 1,074,450 \\\hline \text { Ending inventory (First-in, First-out) } & 85,430 \\\hline \text { Replacement cost of ending inventory } & 91,730 \\\hline\end{array}$$ What amount must be reported for cost of goods sold on the income statement?

A) $982,720
B) $989,020
C) $1,074,450
D) $897,290

Question 41

Williams Company had the following balances and transactions during 2009.
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { sold } 15 \text { units for } \$ 100 \\\hline \text { December } 31 & \text { replacement cost } \$ 60 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31, 2009 balance sheet if the perpetual First-in, First-out method is used?

A) $1,200
B) $900
C) $1,050
D) $1,100

Question 42

Williams Company had the following balances and transactions during 2009.
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { sold } 15 \text { units for } \$ 100 \\\hline \text { December } 31 & \text { replacement cost } \$ 60 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31, 2009 balance sheet if the perpetual Last-in, First-out method is used?

A) $1,050
B) $1,100
C) $900
D) $1,200

Question 43

Williams Company had the following balances and transactions during 2009.
$$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { sold } 15 \text { units for } \$ 100 \\\hline \text { December } 31 & \text { replacement cost } \$ 60 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31, 2009 balance sheet if the specific unit method is used and the units sold were from the June 10 purchase?

A) $1,050
B) $1,100
C) $1,200
D) $900

Question 44

The accountant for a company determines that the 100 units of inventory on hand at the end of the year should be recorded at their cost of $10 each using Last-in, First-out. Current replacement cost is $8.00. What amount would be reported as inventory on the balance sheet?

A) $1,000.00
B) $ 10.00
C) $ 800.00
D) $ 8.00

Question 45

error in ending inventory carries over into the next period.

Question 46

overstatement of ending inventory in the current period results in the understatement of equity in the following year.

Question 47

inventory for the current accounting period is understated by $2,700. What effect will this error have on cost of goods sold?

A) Net income for the current period will be overstated by $2,700.
B) Beginning inventory for the next period will be overstated by $2,700.
C) Equity at the end of the next accounting period will be understated by $2,700.
D) Cost of goods sold for the current period will be overstated by $2,700.

Question 48

company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Net income for the current year is understated by $15,000.
B) Net income for the current year is overstated by $15,000.
C) Net income for the current year is understated by $43,000.
D) Net income for the current year is overstated by $71,000.

Question 49

A company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Net income for the following year is overstated by $71,000.
B) Net income for the following year is understated by $15,000.
C) Net income for the following year is overstated by $15,000.
D) Net income for the following year is overstated by $43,000.

Question 50

A company makes two errors in the physical count of inventory. Beginning inventory was overstated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Net income for the current year is understated by $71,000.
B) Net income for the current year is understated by $15,000.
C) Net income for the current year is overstated by $15,000.
D) Net income for the current year is understated by $43,000.

Question 51

A company makes two errors in the physical count of inventory. Beginning inventory was overstated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Net income for the following year is overstated by $15,000.
B) Net income for the following year is understated by $15,000.
C) Net income for the following year is understated by $71,000.
D) Net income for the following year is overstated by $43,000.

Question 52

A company makes two errors in the physical count of inventory. Beginning inventory was overstated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Ending equity for the current year is understated by $15,000.
B) Ending equity for the current year is understated by $71,000.
C) Ending equity for the current year is overstated by $43,000.
D) None of the above.

Question 53

A company makes two errors in the physical count of inventory. Beginning inventory was overstated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A) Ending owner's equity for the following year is understated by $15,000.
B) Ending owner's equity for the following year is understated by $43,000.
C) Ending owner's equity for the following year is understated by $71,000.
D) None of the above.

Question 54

An audit of Forever Young Cosmetics reveals that beginning inventory was understated by $3,000. Which of the following will result from the correction of this error?

A) Net income will be reduced by $3,000.
B) Cost of goods sold will be reduced by $3,000.
C) Gross profit will be increased by $3,000
D) Both B and C.

Question 55

An audit of Forever Young Cosmetics reveals that beginning inventory was overstated by $3,000. Which of the following will result from the correction of this error?

A) Net income will be reduced by $3,000.
B) Cost of goods sold will be reduced by $3,000.
C) Gross profit will be increased by $3,000
D) Both B and C.

Question 56

An audit of Forever Young Cosmetics reveals that ending inventory was understated by $3,000. Which of the following will result from the correction of this error?

A) Net income will be reduced by $3,000.
B) Cost of goods sold will be reduced by $3,000.
C) Gross profit will be increased by $3,000
D) Both B and C.

Question 57

An audit of Forever Young Cosmetics reveals that ending inventory was overstated by $3,000. Which of the following will result from the correction of this error?

A) Net income will be reduced by $3,000.
B) Cost of goods sold will be reduced by $3,000.
C) Gross profit will be increased by $3,000
D) Both B and C.

Question 58

Ending inventory for the current accounting period is understated by $2,700. What effect will this error have on cost of goods sold and net income?

A)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Overstated } \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Overstated } \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Understated } \\\hline\end{array}$$

Question 59

A company makes two errors in the physical count of inventory. Beginning inventory was understated by $28,000 and ending inventory is understated by $43,000. Which of the following will be the net effect of the two errors?

A)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Overstated } \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Overstaed } \\\hline\end{array}$$ .
C)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$ .

Question 60

Ending inventory for the current accounting period is overstated by $2,700. What effect will this error have on cost of goods sold and net income?

A)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Overstated } \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Overstated } \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Overstated } & \text { Understated } \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold } & \text { Net Income } \\\hline \text { Understated } & \text { Understated } \\\hline\end{array}$$

Question 61

First-in, First-out inventory method is a way to value ending inventory on the basis of cost of goods sold.

Question 62

of the following is the basis of the gross profit method?

A) Net purchases model
B) Cost of goods sold model
C) Perpetual inventory model
D) Net sales revenue model

Question 63

of the following is a method to estimate ending inventory destroyed in a fire?

A) Cost of goods sold method
B) Last-in, First-out method
C) Dollar-value Last-in, First-out method
D) Gross profit method

Question 64

Beginning inventory is $28,000. Ending inventory is $47,000. Net purchases for the year are $110,000. The company's normal gross profit percent is 60%. How much is net sales revenue?

A) $252,500
B) $151,667
C) $101,000
D) $227,500

Question 65

following data is available:
$$\begin{array} { | l | l | } \hline \text { Net sales, first month } & \$ 13,000 \\\hline \text { Normal gross profit } & 45 \% \\\hline \text { Beginning inventory } & 8,000 \\\hline \text { Net purchases } & 7,000 \\\hline\end{array}$$ Using the gross profit method, the amount of gross profit would be:

A) $15,000
B) 6,750
C) 5,850
D) 3,600

Question 66

The following data is available:
$$\begin{array} { | l | l | } \hline \text { Net sales, first month } & \$ 13,000 \\\hline \text { Normal gross profit } & 45 \% \\\hline \text { Beginning inventory } & 8,000 \\\hline \text { Net purchases } & 7,000 \\\hline\end{array}$$ Using the gross profit method, the cost of goods sold would be:

A) $15,000
B) 9,350
C) 7,850
D) 5,850