Using Direct Costing,the Value of Ending Inventory of Finished Goods

question 96

Multiple Choice

Using direct costing,the value of ending inventory of finished goods is:

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

---

Definitions:

Note Payable

A financial obligation represented by a written promissory note which the borrower agrees to pay back to the lender.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement as a non-operating expense.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit arrangement.