Barger-Volvov Company Had the Following Information at December 31, 2016

question 108

Multiple Choice

Barger-Volvov Company had the following information at December 31, 2016: $$\begin{array} { l l } \text { Finished goods inventory, January } 1,2016 \ldots \ldots \ldots \ldots \ldots & \$ 15,000 \\\text { Finished goods inventory, December } 31,2016 \ldots \ldots \ldots \ldots & \$ 21,000\end{array}$$ If the cost of goods manufactured during the year amounted to $332,500 and annual sales were $499,000, how much is the amount of gross profit for the year?

• A)$166,500
• B)$151,500
• C)$326,500
• D)$172,500

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Definitions:

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models, utilized to measure the accuracy of predictions.

Forecasts

Predictions about future events, such as sales, economic trends, or weather, based on historical data and analysis.

Expected Value

A calculated average of all possible values for a random variable, weighted by their probabilities, used in statistics and economics to determine the most likely outcome.

Mature Products

Products in the final stage of their product life cycle, characterized by a slowdown in sales growth and market saturation.