Desired Ending Inventory Is 25% More Than Beginning Inventory

question 155

Multiple Choice

Desired ending inventory is 25% more than beginning inventory. If purchases total $160,000, which of the following statements is TRUE regarding cost of goods sold (COGS) ?

• A) COGS will exceed cost of goods available for sale.
• B) COGS will exceed purchases.
• C) COGS will be less than purchases.
• D) COGS will equal $55,000.

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Definitions:

Industry-versus-inferiority

A stage in Erik Erikson's theory of psychosocial development where children learn to be productive and develop skills or feel inferior for not meeting expectations.

Erik Erikson

Erik Erikson was a developmental psychologist known for his theory on psychosocial development, which outlines eight stages of human development across the lifespan.

Developmental Challenge

A task or situation that requires adaptation or growth in one or more areas of development, such as cognitive, physical, or social-emotional.

Easy Babies

Babies who have a positive disposition; their body functions operate regularly, and they are adaptable.