During Its First Year of Operations, Silverman Company Paid $11,625

Multiple Choice

During its first year of operations, Silverman Company paid $11,625 for direct materials and $11,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $10,000 while general, selling, and administrative expenses totaled $3,500. The company produced 7,250 units and sold 4,500 units at a price of $7.00 a unit. What is the amount of finished goods inventory on the balance sheet at year-end?

A) $2,750
B) $12,375
C) $11,250
D) $6,188