Chapter 2, Problem 27E

Selected information concerning the operations of a company for the year ended December 31 is as follows:

Work in process inventories at the beginning and end of the year were zero. Beginning inventory of finished goods was $9,650 (for 1,000 units). Cost of goods sold was $174,600. What was the company’s finished goods inventory cost at December 31?

1. a. $98,050
2. b. $29,100
3. c. $29,050
4. d. $40,600