Craig's Cola Was to Manufacture 1,000 Cases of Cola Next

question 9

Multiple Choice

Craig's Cola was to manufacture 1,000 cases of cola next week.The accountant provided the following analysis of total manufacturing costs. r² = 0.82 What is the estimated cost of producing the 1,000 cases of cola?

• A)$200,100
• B)$72,032
• C)$100,200
• D)$9,000
• E)$91,812

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Definitions:

FIFO Method

Stands for "First-In, First-Out," a technique to value inventory and determine the cost of goods sold by assuming that the oldest items are sold first.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used to create the product.

Inventory

The total value of a company's raw materials, work-in-process, and finished goods that are considered a current asset on the balance sheet.

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.