At January 1, 2015, Feldstein Manufacturing Had a Beginning Balance

question 108

Multiple Choice

At January 1, 2015, Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred:
Job A-12 was completed for a total cost of $120,000 and was sold for $125,000.
Job A-13 was completed for a total cost of $200,000 and was sold for $210,000.
Job A-15 was completed for a total cost $60,000, but was not sold as of year-end.
At the end of the year, what was the balance in Finished Goods Inventory?

• A)$60,000 debit balance
• B)$40,000 credit balance
• C)$80,000 debit balance
• D)$30,000 debit balance

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Definitions:

Marginal Consumer

A consumer who is indifferent between purchasing and not purchasing an additional unit of a good, based on the current price.

Social Cost

The total cost of an activity to society, including both private and external costs.

Private Cost

The costs that an individual or company incurs in the production of goods or services, excluding any externalities.

External Costs

Uncompensated costs incurred by someone who is not involved in the production or consumption of a good or service, typically relating to environmental damage or public health.