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 $200,000? $$\begin{array} { | l | r | }
\hline & { \text { Cost } } \
\hline \text { Materials } & \$ 150,000 \
\hline \text { Costs to process into finished product } & 100,000 \
\hline
\end{array}$$
A)$0
B)$150,000
C)$200,000
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 $200,000? $$\begin{array} { | l | r | } 
\hline & { \text { Cost } } \
\hline \text { Materials } & \$ 150,000 \
\hline \text { Costs to process into finished product } & 100,000 \
\hline
\end{array}$$
A)$0
B)$150,000
C)$200,000
D)$250,000

Quizplus · Accepted Answer

The ending value of the finished goods inventory is based on its market value, not its cost. Therefore, the ending value would be the same as the market value, which is $200,000.

Using the Following Cost Information Regarding Finished Goods, What Would