Use the Information Below to Answer the Following Question(s)

question 154

Multiple Choice

Use the information below to answer the following question(s) .Contempo Futon manufactures futons.The estimated number of sales for the last quarter of 2018 is as follows:
Beginning finished goods inventory should be equal to 30 percent of that month's budgeted sales plus 10 percent of the following month's budgeted sales.January and February 2018 sales are anticipated to be 15,000 futons in each month.The cost to produce a futon is $125.
-What will be Contempo Futon's cost of goods manufactured for December?

• A)$3,937,500
• B)$3,750,000
• C)$2,812,500
• D)$2,625,000
• E)$3,187,500

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Definitions:

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.

Carrying Value

The book value of an asset, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Bonds Maturity

The date at which a bond's principal amount is due to be paid back to the bondholder, terminating the bond's existence.