Answer the following questions using the information below:
The following information pertains to Bondi Creations:
$\begin{array}{ll}
\hline & \
\hline \text { Manufacturing costs } & \$ 1,500,000 \
\hline \text { Units manufactured } & 30,000 \
\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \
\hline \text { Beginning inventory } & 0 \text { units } \
\hline\\hline
\end{array}$
-What is the cost of ending finished goods inventory?
A)$25 424
B)$1 475 000
C)$25 000
D)$42 500

Question

Answer the following questions using the information below:
The following information pertains to Bondi Creations:
 $\begin{array}{ll}
\hline & \
\hline \text { Manufacturing costs } & \$ 1,500,000 \
\hline \text { Units manufactured } & 30,000 \
\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \
\hline \text { Beginning inventory } & 0 \text { units } \
\hline\\hline
\end{array}$
-What is the cost of ending finished goods inventory?
A)$25 424
B)$1 475 000
C)$25 000
D)$42 500

Quizplus · Accepted Answer

The cost of ending finished goods inventory is calculated by finding the cost per unit manufactured and then multiplying it by the number of units left in inventory at the end of the period. The cost per unit is $1,500,000 / 30,000 = $50. With 30,000 units manufactured and 29,500 units sold, there are 500 units left in inventory. Therefore, the cost of ending finished goods inventory is 500 units * $50/unit = $25,000.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following