The Following Information Was Provided by Grand Company for the Year

question 81

Multiple Choice

The following information was provided by Grand Company for the year just ended:
$\begin{array} { l r } \text { Decrease in finished goods inventory } & \$ 4,655 \\\text { Sales } & \$ 500,000 \\\text { Gross margin } & \$ 100,000\end{array}$
What was the cost of goods manufactured for the year?

• A) $95,345.
• B) $104,655.
• C) $395,345.
• D) $404,655.

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Definitions:

Compounded Monthly

This refers to the calculation and addition of interest to the principal sum of a loan or deposit on a monthly basis.

Equal Monthly Payments

Fixed payments made every month, as in a loan or mortgage, ensuring that the loan is paid off over a specified period.

Compounded Monthly

A method where interest earnings are calculated and added to the principal amount each month, allowing the interest to then earn interest in subsequent months.

Compounded Semi-annually

A method of calculating interest where the earned interest is added to the principal balance twice a year, affecting the total interest earned over time.