Question

Andrews Corp. ended the year carrying $153,576,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?

Answer 1

Answer: $153,576,000

Explanation:

At year end, all the costs of inventory have been accounted for and incurred by the company. The inventory left therefore has no costs attached to it.

If Andrews Corp had been able to sell the inventory they had at year end, they would therefore not have incurred any new costs for doing so. The revenue they would have gotten would be equal to the worth of the inventory as is which was $153,576,000.