Using the Absorption Method,the Value of Ending Inventory of Finished

question 99

Multiple Choice

Using the absorption method,the value of ending inventory of finished goods is:

• A) $100,000
• B) $120,000
• C) $140,000
• D) $220,000

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Definitions:

Enforcement

The act of compelling compliance with a law, rule, agreement, or order through the application of penalties for violations.

Conforming Goods

Products that meet the specifications and requirements set forth in a contract of sale.

Obligated

Being legally or morally bound to do something.

Perfect Tender Rule

A legal principle requiring sellers to deliver goods that exactly meet the terms and specifications of the contract.