Tierney Construction,Inc

question 4

Multiple Choice

Tierney Construction,Inc.recently lost a portion of its financial records in an office theft.The following accounting information remained in the office files:
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead.The CFO of Tierney Construction,Inc.has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount in the finished goods inventory at December 31,2010?

• A)$55,500.
• B)$35,000.
• C)$43,000.
• D)$49,000. $49,000 = $98,000 + $31,000 - $80,000

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Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.

Labor Supply Curve

A visual diagram that illustrates the connection between the salary provided and the amount of work employees are ready to offer.

Competitive Firm

A company operating in a market where there are many buyers and sellers, and no single entity can influence the market price.

Human Capital Investment

The process of increasing the value of a workforce through education, training, and health initiatives.