If an inventory item has a base cost to the company of $50, and requires three hours of labor at $15/hr. to be turned into a salable item, the value of that piece of inventory is at least:

A) $65.
B) $165.
C) $95.
D) $45.

Question

Shifa Sohail · Accepted Answer

Final Answer : C, Explanation :  The value of the piece of inventory is calculated by adding the base cost to the company ($50) to the cost of labor required to turn it into a salable item (3 hours at $15/hr., which totals $45). Therefore, $50 + $45 = $95.

If an inventory item has a base cost to the company of $50, and requires three hours of labor at $15/hr. to be turned into a salable item, the value of that piece of inventory is at least:

A) $65.
B) $165.
C) $95.
D) $45.

Definitions

Learning Objectives

Learning Objectives

Related questions

If an inventory item has a base cost to the company of $50, and requires three hours of labor at $15/hr. to be turned into a salable item, the value of that piece of inventory is at least:A) $65.B) $165.C) $95.D) $45.

Definitions

Learning Objectives

Learning Objectives

Related questions

If an inventory item has a base cost to the company of $50, and requires three hours of labor at $15/hr. to be turned into a salable item, the value of that piece of inventory is at least:

A) $65.
B) $165.
C) $95.
D) $45.