During Its First Year of Operations,Silverman Company Paid $14,000 for Direct

question 36

Multiple Choice

During its first year of operations,Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages.Lease payments and utilities on the production facilities amounted to $17,000 while general,selling,and administrative expenses totaled $8,000.The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What is the amount of finished goods inventory on the balance sheet at year-end?

• A) $10,000
• B) $20,000
• C) $4,000
• D) $15,000

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Definitions:

World Trade Organization

is an international organization established to oversee and facilitate international trade agreements, negotiations, and resolution of trade disputes between countries.

Free-Trade Philosophy

A belief system advocating for minimal governmental intervention in international trade, favoring a more open and less restricted trading environment.

Trade Barriers

Measures implemented by governments to regulate or restrict international trade, such as tariffs, quotas, and regulations, aiming to protect domestic industries.

WTO

The World Trade Organization; an intergovernmental organization that regulates international trade.