Suppose That Badger's 2017 Ending Inventory,valued at Year-End Costs,was $143,000

question 37

Multiple Choice

Suppose that Badger's 2017 ending inventory,valued at year-end costs,was $143,000 and that the relative cost index for this inventory in 2017 was 1.10.In determining the inventory balance should Badger report in its 12/31/17 balance sheet:

• A)An additional layer of $23,000 is added to the 1/1/17 balance.
• B)An additional layer of $22,000 is added to the 1/1/17 balance.
• C)An additional layer of $11,000 is added to the 1/1/17 balance.
• D)None of the above is correct.

---

Definitions:

Selling Price

The price at which a product or service is sold to customers, determined by factors like cost, demand, competition, and market conditions.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Short Run

A period in which at least one input is fixed and cannot be changed by the firm.

Variable Costing

A cost accounting method that includes only variable costs—costs that change with production levels—in product cost calculations.