Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 47

Multiple Choice

Use the information below to answer the following questions.
Scott's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows: $$\begin{array} { l r } \text { Palings } & \$ 4,000 \\\text { Posts } & \$ 5,000 \\\text { Nails (no usage records) } & \$ 500 \\\text { Cement (no usage records) } & \$ 500 \\\text { Wear and tear on equip. } & \$ 2,000\end{array}$$
-Refer to the table above. The total direct costs incurred in erecting the 4,000 metres of fencing is:

• A)$11,000.
• B)$9,000.
• C)$9,500.
• D)$10,000.

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Definitions:

Beginning Inventory

The valuation of goods on hand for sale or use in production at the start of an accounting period.