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RAM Manufacturing LLC Is a Rapidly Growing Manufacturer of Parts

Question 46

Multiple Choice

RAM Manufacturing LLC is a rapidly growing manufacturer of parts for the automotive industry. Maeve is a newly hired cost accountant. RAM Manufacturing's has developed a new disc brake that lasts longer than brakes from their competitors. After calculating all the direct, indirect and overhead costs, Maeve assigns a cost of $44.50 per disc brake assembly. RAM Manufacturing has manufactured 100,000 of their new disc brake and sold 60,000 to their largest customer. Before shipping any brakes to customers, what is their finished goods inventory?


A) $4,450,000
B) $2,670,000
C) $1,780,000
D) $3,570,000

Correct Answer:

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