Suppose That Badger's 2014 Ending Inventory, Valued at Year-End Costs

question 65

Multiple Choice

Suppose that Badger's 2014 ending inventory, valued at year-end costs, was $143,000 and that the relative cost index for this inventory in 2014 was 1.10. In determining the inventory balance should Badger report in its 12/31/14 balance sheet:

• A)An additional layer of $23,000 is added to the 1/1/14 balance.
• B)An additional layer of $22,000 is added to the 1/1/14 balance.
• C)An additional layer of $11,000 is added to the 1/1/14 balance.
• D)None of the above is correct.

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Definitions:

Wage Rate

The amount of money paid per unit of time or per task for labor or services.

Demand for Labor

The employers' total demand for workers, influenced by wages, productivity, and economic conditions.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Formula

A symbolic expression that defines a rule or relationship in mathematics.