Sludge, Inc

question 119

Multiple Choice

Sludge, Inc. has an ending work in process inventory of $180 and an ending finished goods inventory of $300. Cost of goods manufactured was $630, and cost of goods sold $540. Production costs incurred during the period were $620. What are the beginning inventories for work in process and finished goods, respectively?

• A) $l70 and $390
• B) $190 and $210
• C) $270 and $390
• D) $170 and $210

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Definitions:

Proportional

A relationship between two quantities where they increase or decrease at the same rate.

Tax Collection

The process performed by governments or authorized agencies to collect taxes from individuals, corporations, and other entities to fund public expenditures.

Administrative Costs

The resources used (which is a cost) by government to collect the tax, and by taxpayers to pay it as well as to evade it, over and above the amount of the tax.

Inefficiency

A scenario where resources are not used optimally, leading to wasted potential output or outcomes that do not maximize societal welfare.