Compute Ending Inventory for 2018 Under the Temporal Method

question 66

Multiple Choice

Compute ending inventory for 2018 under the temporal method.

• A) $13,950.
• B) $14,100.
• C) $14,400.
• D) $14,850.
• E) $15,150.

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Definitions:

Direct Labor

The labor costs that are specifically traceable to the production of goods or services.

Budgeted Units

An estimate of the quantity of goods or services that an organization plans to produce or sell in a specific period.

Planning Budget

A budget developed for various levels of activity, forecasting revenue and expense figures based on different production or sales volumes.

Net Operating Income

The profit a company generates from its regular business activities, excluding deductions for interest and taxes.