Parker Corp Manufacturing Costs $3,000 $5,000 $4,500
Based on Managerial Judgment,what Is

question 118

Multiple Choice

Parker Corp.has developed the following information on product costs and inventories for a three-month period: $\begin{array}{lccc}&\text { January } & \text { February }& \text {March}\\\\\text { Finished goods inventory, }\\\text { units:}\\\text { Beginning } & 15 & 20 & 25 \\\text { Manufactured } & \underline{30}& \underline{45}& \underline{40} \\\text { Available } & 45&65&65\\\text { Sold } & \underline{25} & \underline{40} & \underline{50}\\\text { Ending }& \underline{20}& \underline{25}& \underline{15}\end{array}$ Manufacturing costs $3,000 $5,000 $4,500
Based on managerial judgment,what is the best predictor of manufacturing costs?

• A)beginning inventory
• B)units manufactured
• C)ending inventory
• D)units available

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Definitions:

Warranty Costs

Expenses incurred by a company for repairing, replacing, or refunding products that have failed within the warranty period.

Income Tax Rate

The income tax rate is the percentage at which an individual or corporation is taxed on their income, varying by jurisdiction and income level.

Deferred Tax Assets

Assets on a company's balance sheet that may be used to reduce future tax liability.

Deferred Tax Liabilities

Future tax obligations due to temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements.