Ballard Company Makes Portable Speakers $\begin{array}{ll}\text { January } 1 & 1,260 \\\text { December } 31 & 1,040\end{array}$

question 75

Multiple Choice

Ballard Company makes portable speakers. During the year Ballard manufactured 100,000 sets of portable speakers. Finished goods inventory had the following units on hand:
$\begin{array}{ll}\text { January } 1 & 1,260 \\\text { December } 31 & 1,040\end{array}$
-Refer to the Figure.Suppose each set of portable speakers has a per-unit product cost of $112.What would be the cost of finished goods inventory on December 31?

• A)$24,640
• B)$116,480
• C)$124,640
• D)$141,120

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Definitions:

Private Marginal Cost

The cost incurred by a firm or individual for producing one additional unit of a good or service, not including external costs.

Traffic Congestion

Refers to the situation where there are more vehicles than the road can accommodate, leading to slower speeds, longer trip times, and increased vehicular queuing.

Marginal Social Cost

The total cost incurred by society when the production of a good or service is increased by one additional unit, including both private and external costs.

Common Resources

Goods that are non-excludable and rivalrous, meaning they are available to all but can be depleted by overuse.