Ballard Company makes portable speakers. During the year Ballard manufactured 100,000 sets of portable speakers. Finished goods inventory had the following units on hand:
$\begin{array}{ll}
\text { January } 1 & 1,260 \
\text { December } 31 & 1,040
\end{array}$
-Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of finished goods inventory on December 31?
A)$24,640
B)$116,480
C)$124,640
D)$141,120

Question

Ballard Company makes portable speakers. During the year Ballard manufactured 100,000 sets of portable speakers. Finished goods inventory had the following units on hand:
 $\begin{array}{ll}
\text { January } 1 & 1,260 \
\text { December } 31 & 1,040
\end{array}$
-Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of finished goods inventory on December 31?
A)$24,640
B)$116,480
C)$124,640
D)$141,120

Quizplus · Accepted Answer

The cost of finished goods inventory on December 31 is calculated by multiplying the number of units on hand (1,040) by the per-unit product cost ($112), which equals $116,480.

Ballard Company Makes Portable Speakers January 11,260 December 311,040\begin{array}{ll}\text { January } 1 & 1,260 \\\text { December } 31 & 1,040\end{array} January 1 December 31​1,2601,040​

Ballard Company Makes Portable Speakers $\begin{array}{ll}\text { January } 1 & 1,260 \\\text { December } 31 & 1,040\end{array}$