The Following Information Is Available for Barnes Company for the Fiscal

question 58

Multiple Choice

The following information is available for Barnes Company for the fiscal year ended December 31:
$\begin{array}{llr} \text { Beginning finished goods inventory in units } &0\\ \text {Units produced } &4,800\\ \text { Units sold } &4,000\\ \text { Sales } &\$400,000\\ \text { Materials cost } &\$96,000\\ \text { Variable conversion cost used } &\$48,000\\ \text { Fixed manufacturing cost} &\$72,000\\ \text { Indirect operating costs (fixed) } &\$80,000\\\end{array}$

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Cost of goods sold using variable costing is:

• A) $110,000
• B) $120,000
• C) $144,000
• D) $40,000

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Definitions:

Odds Increase

"Odds increase" implies that the probability or likelihood of a specific event or outcome happening is rising.

Gambler's Fallacy

The incorrect belief that future probabilities are altered by past events in a random process.

State Lottery

A government-regulated form of gambling which involves the drawing of numbers for a prize.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.