Answer the Following Questions Using the Information Below:
Pederson Company

question 205

Multiple Choice

Answer the following questions using the information below:
Pederson Company reported the following:
$\begin{array}{ll}\text { Manufacturing costs } & \$ 150,000 \\\text { Units manufactured } & 5,000 \\\text { Units sold } & 4,700 \text { units sold for } \$ 75 \text { per unit } \\\text { Beginning inventory } & 100 \text { units }\end{array}$
-What is the manufacturing cost for the ending finished goods inventory?

• A) $12,000
• B) $8,000
• C) $11,000
• D) $5,000

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Definitions:

Present Values

The present value of a future amount of money or series of payments, based on a certain rate of return.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.

Sales Revenue

The income received by a company from its sales of goods or services before any expenses are deducted.

Working Capital

The measure of a company's short-term liquidity, determined by subtracting current liabilities from current assets.