If an industry is characterized by low entry barriers, strong supplier and buyer positions, high threat of substitutes and inten
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Answer:
$12,480
Explanation:
Given:
Amount paid for direct material = $12,240
production workers' wages = $10,700
Lease payments and utilities on the production facilities amounted = $9,700
general, selling, and administrative expenses = $3,800
Units produced = 6,800 units
Units sold = 4,200
Unit price of a unit = $7.30
Now,
Per unit Cost of production =
or
Per unit Cost of production =
or
Per unit cost of production = $4.80
Also,
Units left in the inventory = Total units produced - Units sold
= 6,800 - 4,200
= 2,600
Thus,
Amount of finished goods inventory on the balance sheet at year-end
= units left in the inventory × Per unit cost of production
= 2,600 × $4.80
= $12,480