The Inventory Records of a Corporation Provided the Following Information

question 144

Multiple Choice

The inventory records of a corporation provided the following information at the end of 2013: $\begin{array} { | l | l | } \hline \text { Cost per unit } & \$ 10,000 \\\hline \text { Insurance premium paid per unit } & 500 \\\hline \text { Financing expense per unit } & 600 \\\hline \text { Cost of permanent security system per unit (allocated) } & 1,500 \\\hline \text { Freight per unit (when purchased) } & 300 \\\hline \text { Cost of permanent reusable display case for this product only, per unit }& 400 \\\hline \text { Advertising expense per unit (allocated) } & 1,000 \\\hline\end{array}$ What unit cost should be used for valuing inventory on hand at the end of 2013?

• A) $10,800
• B) $12,200
• C) $12,800
• D) $13,700

---

Definitions:

Established Patient

A patient who has seen the physician within the past 3 years. This determination is important when using E/M codes.

Plus Sign

The symbol (+) used in mathematics to denote addition or positive values.

Main Procedure

The primary or chief series of actions designed to achieve a specific result or accomplish a determined goal in various contexts, such as surgery or computer routines.

Modifier

In language and coding, a word, phrase, or code that alters or clarifies the meaning of another word or phrase; in healthcare coding, it specifies treatment details.