The Sumter Company Recently Had a Fire in Its Accounting

question 22

Multiple Choice

The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following information could be salvaged for 2018: $$\begin{array} { l r } \text { Direct labor } & \$ 400,000 \\\text { Factory overhead } & 200,000 \\\text { Cost of goods sold } & 800,000 \\\text { Work in process, January 1 } & 80,000 \\\text { Finished goods, January 1 } & 160,000 \\\text { Work in process, December } 31 & 100,000 \\\text { Finished goods, December } 31 & 120,000\end{array}$$
The cost of direct materials used in production during 2018 is

• A)$140,000.
• B)$180,000.
• C)$200,000.
• D)$260,000.

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Definitions:

First-Order Linear Regression Model

A statistical model that describes a linear relationship between a dependent variable and one independent variable, characterized by a straight line.

Population Parameters

Characteristics that describe aspects of a population, such as mean (average), variance, or standard deviation.

Y-Intercept

The point where a line or curve crosses the y-axis of a graph.

Slope

In mathematics and statistics, the measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.