Chu Company Provided the Following Information Related to Its Inventory

question 144

Multiple Choice

Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: $$\begin{array} { c c c c c } & \begin{array} { c } \text { Dec. Year 1 } \\\text { (Actual) }\end{array} & \begin{array} { c } \text { Jan. Year 2 } \\\text { (Budgeted) }\end{array} & \begin{array} { c } \text { Feb. Year 2 } \\\text { (Budgeted) }\end{array} & \begin{array} { c } \text { Mar. Year 2 } \\\text { (Budgeted) }\end{array} \\\text { Cost of goods sold } & \$ 80,000 & \$ 140,000 & \$ 180,000 & \$ 120,000\end{array}$$ Desired ending inventory levels are 25% of the following month's projected cost of goods sold.Budgeted purchases of inventory in February Year 2 would be:

• A) $135,000.
• B) $165,000.
• C) $180,000.
• D) $225,000.

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Definitions:

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information in a manner that validates one's existing beliefs or theories.

Internal Motivation

The drive that originates from within an individual to pursue goals or actions because of personal satisfaction or desire, rather than external rewards or pressures.

Self-Regulation Task

Activities or exercises designed to improve an individual's ability to monitor and control their emotions, thoughts, and behaviors in accordance with long-term goals.

Self-Regulation Task

An activity designed to test or improve an individual's ability to control their impulses, emotions, or actions.