Use the Following Information for Questions 34-35

question 26

Multiple Choice

Use the following information for questions 34-35.
Silver Ltd. has 35 employees who work 8-hour days and are paid hourly. On January 1, 2020, the company began a program of granting its employees 10 days paid vacation each year. Vacation days earned in 2020 may be taken starting on January 1, 2021. Information relative to these employees is as follows: Silver has chosen to accrue the liability for compensated absences (vacation pay) at the current rates of pay in effect when the vacation pay is earned.
-What is the amount of the Vacation Wages Payable that should be reported at December 31, 2022?

• A) $ 39,900
• B) $ 45,360
• C) $ 47,460
• D) $ 47,880

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Definitions:

Carrying Cost

Carrying cost includes expenses associated with holding or storing inventory, such as insurance, storage, and opportunity costs.

Annual Demand

Annual demand refers to the total quantity of a product or service that consumers are willing and able to purchase over a year.

Average Collection Period

The average time it takes for a business to collect payments owed by its customers.

Credit Obligations

Financial commitments, such as loans or credit card debt, that an individual or entity is legally required to repay.