Sebring Company Has the Following Data The Cost of Goods Sold Percentage Is 70% of Sales

question 5

Multiple Choice

Sebring Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { April } & \$ 40,000 \\\text { May } & 44,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 48,000\end{array}$
The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost.________ was the beginning inventory on May 1.

• A) $3,300
• B) $7,700
• C) $8,750
• D) $11,000

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Definitions:

Draw Conclusions

to make a judgment or decision based on the evidence or information gathered.

Violating Expectations

The act of not meeting or going against what was anticipated or regarded as likely by others.

Constructing a Message

The process of creating and formulating a communication intended for a specific audience.

False Information

Incorrect or misleading data, facts, or details that are presented as true despite being untrue.