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13 December, 19:21

Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of candy of which 8,000 were sold. Based on this information the balance in the inventory account on Brock's balance sheet would be

A. $1,800.

B. $2,000.

C. $9,000.

D. None of the above.

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  1. 13 December, 22:26
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    A. $ 1.800

    Explanation:

    The total manufacturing costs for the period are:

    Raw materials $ 3,000

    Labor $ 4.000

    Overhead costs $ 2,000

    Total cost of goods manufactured $ 9,000

    Units started and completed 10,000

    Cost per unit $ 9,000 / 10,000 units $ 0.90 per unit

    Units inventory at end of period 2,000

    Inventory value at period end $ 0.90 * 2,000 = $ 1,800
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