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Colbyville Insurance Company sells automobile and life insurance policies. As a service to its agents, the manager provides complimentary calendars that agents can give as gifts to clients and prospective clients. The calendars cost $0.50 each. Early in February, the manager wanted to know how many calendars had been given out in January. Sue Ellen, the office assistant, gathered the following information:
a. On January 1, there were 150 calendars on hand.
b. An order for 1,000 additional calendars was placed on January 3. It arrived on January 10.
c. On January 31, there were 614 calendars on hand.
Required
1. How many calendars did agents take to give to clients during January?
2. What is the cost of the calendars given out?
3. What is the cost of the ending inventory of calendars on hand?
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