Segal Company Has the Following Data The Cost of Goods Sold Percentage Is 80% of Sales

question 117

Multiple Choice

Segal Company has the following data:
$\begin{array}{ll}\text { Month }&\text { Budgeted Sales }\\\text { May } & \$ 46,000 \\\text { June } & 50,000 \\\text { July } & 52,000 \\\text { August } & 49,000\end{array}$
The cost of goods sold percentage is 80% of sales and the desired ending inventory level is 25% of next month's sales at cost.What is the beginning inventory on August 1?

• A) $4,200
• B) $8,450
• C) $9,800
• D) $10,400

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Definitions:

Imperfectly Competitive

A market structure where not all firms have negligible influence on market prices due to differentiations in products, number of firms, or barriers to entry.

Marginal Products

The additional output that is produced by using one more unit of a particular input, while keeping other inputs constant.

Successive Workers

Workers who are added into a production process, one after the other, often evaluated in terms of their marginal contributions to output.