Use the Information Below to Answer the Following Questions Finished Goods Inventory at the End of September Is 2,000

question 72

Multiple Choice

Use the information below to answer the following questions.
Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold for the last three months of 2015 is:
$\begin{array}{lr}\text { Month}&\text { Sales }\\\text { October } & 10,000 \\\text { November } & 7,000 \\\text { December } & 5,000 \\\text { Tanuary } & 6,000\end{array}$ Finished goods inventory at the end of September is 2,000 units. Finished goods inventory is set at 20 percent of next month's sales.
-Refer to the table above.If a patio set costs $100 to produce,what will be the cost of sales in the budgeted statement of comprehensive income for the period October to December 2015?

• A) $1,800,000.
• B) $1,900,000.
• C) $2,200,000.
• D) $1,500,000.

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Definitions:

Statistical Significance

A mathematical indication that the difference observed between groups or the relationship within data is unlikely to have occurred due to chance alone, typically determined by a p-value.

Sample Size

The number of subjects or units included in a study or analysis.

Independent-Means T Test

An analytical technique employed to assess if the averages of two distinct groups differ significantly in a statistical context.

Elements

The basic constituents of a data set, or the simplest units of which a substance or system is composed.