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:

Loanable Funds

The money available for borrowing; the market wherein savers supply funds to borrowers, typically through financial intermediaries.

Interest Rates

The rate at which a borrower is charged interest for borrowing money from a lender.

Perpetuity

An annuity in which the periodic payments begin on a fixed date and continue indefinitely.

Long-Term Bonds

Debt securities with a maturity of more than 10 years, offering periodic interest payments.