Groovelex Inc.reports the Following Information

question 119

Multiple Choice

Groovelex Inc.reports the following information:
-There are no beginning inventories.What is the ending balance in finished goods inventory using absorption costing?

• A)$8,500
• B)$8,000
• C)$6,000
• D)$4,000

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Definitions:

Asset Balances

The valuation of an organization's resources, such as cash, investments, property, and equipment, reflected in its financial statements at a specific point in time.

Liability Balances

The outstanding obligations or debts that a company owes to third parties.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.

Cash Dividend

The allocation of a part of a company's profits to its shareholders, approved by the board of directors, and typically dispensed in the form of cash.