Singh Company manufacturers wheelchairs.Each wheelchair requires $325 of raw materials and $780 of conversion costs.Each wheelchair is sold for $1,500.Last month Singh completed 35 wheelchairs and sold 32 wheelchairs.The ending balance in finished goods inventory is:
A)$3,500.
B)$1,105.
C)$3,315.
D)$4,315.
E)$4,420.

Question

Quizplus · Accepted Answer

The ending balance in finished goods inventory is the cost of the wheelchairs that are completed but not yet sold. Last month, Singh completed 35 wheelchairs and sold 32 wheelchairs, so the ending balance in finished goods inventory is the cost of 3 wheelchairs. The cost of each wheelchair is $325 of raw materials and $780 of conversion costs, for a total of $1,105. Therefore, the ending balance in finished goods inventory is $3,315 (3 x $1,105).

Singh Company Manufacturers Wheelchairs