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Question: During its first year of operations, Silverman Company paid $11,440 for direct materials and $9,900 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,900 while general, selling, and administrative expenses totaled $4,400. The company produced 5,600 units and sold 3,400 units at a price of $7.90 a unit.
What is the amount of finished goods inventory on the balance sheet at year-end? (Do not round intermediate calculations.)
$8,500
$5,940
$2,200
$11,880
For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.)
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