Reference:
Frosting Corp -What Was the Cost of Goods Sold for the Period

question 91

Multiple Choice

Reference:
Frosting Corp. has provided the following relating to the most recent month (August 31, 2016) of operations, for their main product, cupcakes $$\begin{array} { l r } \text { Baker's salaries } & 20,000 \\\text { Finished goods inventory, beginning } & 18,000 \\\text { Finished goods inventory, ending } & 20,000 \\\text { General \& administrative expenses } & 20,000 \\\text { Indirect materials } & 17,500 \\\text { Production Supervisor, Salary } & 21,000 \\\text { Purchases of raw materials } & 28,000 \\\text { Raw materials inventory, ending } & 19,000 \\\text { Raw materials inventory, beginning } & 18,000 \\\text { Rent on production factory } & 19,000 \\\text { Rent, retail store } & 18,000 \\\text { Sales } & 243,000 \\\text { Utilities on production factory } & 17,500 \\\text { Utilities, retail store } & 17,000 \\\text { Wages, retail staff } & 20,000 \\\text { WIP inventory, beginning } & 19,500 \\\text { WIP inventory, ending } & 21,500\end{array}$$
-What was the cost of goods sold for the period?

• A)$120,000
• B)$118,000
• C)$123,000
• D)$121,000

---

Definitions:

Probability

A numerical measure of the likelihood that an event will occur.

Value(s)

Represents the magnitude, amount, or number in a given context, or the worth of something.

Test Statistic

A calculated value from sample data that is used in a hypothesis test to determine whether to reject the null hypothesis.

Test Statistic

A statistical measure computed to assess the evidence against a null hypothesis in a testing framework.