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Question - The AMX Company was started on January 1, 2007. The company incurred the following transactions during the year. (Assume all transactions are for cash unless otherwise indicated.) First, acquired $2,500 by issuing common stock. Second, purchased $700 of direct raw materials. Third, used $500 of these direct raw materials in the production process. Fourth, paid production workers $900 cash. Fifth, paid $800 for manufacturing overhead (assume applied and actual overhead are the same). Sixth, started and completed 100 units of inventory. Seventh, sold 80 units at a price of $30 each. Eighth, paid $400 for selling and administrative expenses.
The amount of finished goods inventory on AMX's balance sheet at December 31, 2007 would be $440. How do you work out this problem to find the amount of finished goods ($440)?
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