During Its First Year of Operations, Silverman Company Paid $11,625

question 41

Multiple Choice

During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $10,000 while general, selling, and administrative expenses totaled $3,500. The company produced 7,250 units and sold 4,500 units at a price of $7.00 a unit. What is the amount of finished goods inventory on the balance sheet at year-end?

• A) $2,750
• B) $12,375
• C) $11,250
• D) $6,188

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Definitions:

Nucleotide Excision Repair

A DNA repair mechanism that removes and correctly replaces a damaged DNA segment in the genome.

Nuclease

An enzyme that cleaves the chains of nucleotides in nucleic acids into smaller units.

DNA Ligase

An enzyme essential for DNA replication and repair, responsible for joining the breaks in the double-stranded DNA molecule.

Pyrimidine Bases

Nitrogen-containing compounds found in DNA and RNA, including cytosine, thymine, and uracil.