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:

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Quizplus · Accepted Answer

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