Show your work!

Selected information concerning the operations of a company for the year ended December 31 is as follows:

Units Produced	20,000
Units Sold	18,000
Direct Materials Used	80,000
Direct Labor Incurred	40,000
Factory Overhead	74,000

Work in process inventories at the beginning and end of the year were zero (0). Beginning inventories of finished goods was $9650 (for 1000 units). Cost of Goods sold was $174600. What was the companys finished goods inventory cost at December 31?

$98,050

$29,100

$29,050

$40,600

Business Scenarios

1. Binding versus Persuasive Authority.

A country court in Illinois is deciding a case involving an issue that has never been addressed before in that state's courts. The Iowa Supreme Court, however, recently decided a case involving a very similar fact pattern. Is the Illinois court obligated to follow the Iowa Supreme Court's decision on the issue? If the United States Supreme Court had decided a similar case, would that decision be binding on the Illinois court? Explain.

3. Stare Decisis.

In this chapter, we stated that the doctrine of stare decisis "became a cornerstone of the English and American judicial systems." What does stare decisis mean, and why has this doctrine been so fundamental to the development of out legal traditions?