Question

We purchased lumber (raw materials) costing $4,410, which was received on December 31. The lumber was not put into production until January 3. The lumber arrived just after we had completed the inventory count so it was not included in the count and the invoice was not recorded in accounts payable. The terms of the purchase were "FOB destination."

Answer 1

The GDP of the small nation, which produced trees, lumber, and bookshelves, is $600.

Step-by-step explanation:

The question is asking for the GDP (Gross Domestic Product) of a small nation that cut down trees, turned them into lumber, and used the lumber to produce bookshelves.

To calculate the GDP, we need to add up the value of the final goods produced, which in this case includes the value of the trees, the lumber, and the bookshelves.

The small nation cut down $200 worth of trees, turned $100 worth of those trees into $150 worth of lumber, and used $100 worth of that lumber to produce $250 worth of bookshelves.

Therefore, the GDP of the nation would be the sum of $200, $150, and $250, which is $600.