Answer the Following Questions Using the Information Below:
the Following

question 166

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Razor's Corp:
$$\begin{array} { l l } \text { Manufacturing costs } & \$ 135,000 \\\text { Units manufactured } & 15,000 \\\text { Units sold } & 12,000 \text { units sold for } \$ 15 \text { per unit } \\\text { Beginning inventory } & \$ 3,500\end{array}$$
-What is the manufacturing cost for the ending finished goods inventory?

• A) $42,500
• B) $25,500
• C) $18,500
• D) $30,500

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when cash is received or paid, respectively.

External Reporting

The process of providing financial statements and other pertinent information to outside entities, such as investors, creditors, and regulatory agencies.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing how much profit a company makes on sales.

Net Income

The sum a company holds as profit once it has subtracted expenses and taxes from its aggregate revenue.