Using the following cost information regarding finished goods, what would be the ending value of the finished goods inventory if the market value of the goods is $300,000? $$\begin{array} { | l | r | }
\hline & { \text { Cost } } \
\hline \text { Materials } & \$ 150,000 \
\hline \text { Costs to process into finished product } & 100,000 \
\hline
\end{array}$$
A)$ 0
B)$100,000
C)$150,000
D)$250,000

Question

Using the following cost information regarding finished goods, what would be the ending value of the finished goods inventory if the market value of the goods is $300,000? $$\begin{array} { | l | r | } 
\hline & { \text { Cost } } \
\hline \text { Materials } & \$ 150,000 \
\hline \text { Costs to process into finished product } & 100,000 \
\hline
\end{array}$$
A)$ 0
B)$100,000
C)$150,000
D)$250,000

Quizplus · Accepted Answer

The ending value of the finished goods inventory is equal to its market value, which is given as $300,000. This is higher than the cost to produce the goods of $250,000 ($150,000 for materials + $100,000 for processing), so the ending value would be $300,000. Therefore, the correct answer is option D.

Using the Following Cost Information Regarding Finished Goods, What Would