Johnson Manufacturing Has the Following Selected Information Available for the Year

question 26

Multiple Choice

Johnson Manufacturing has the following selected information available for the year: In addition, the cost of the finished goods inventory increased by $10,000 from the beginning to the end of the year. Cost of goods sold for the year is:

• A) $ 80,000.
• B) $170,000.
• C) $ 90,000.
• D) $110,000.

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Definitions:

Wholesale

The sale of goods in large quantities at lower prices, typically to retailers who then sell them to the final consumer.

Retail

The sale of goods to the public in relatively small quantities for use or consumption rather than for resale.

Reorder Point

The inventory level at which an order should be placed to replenish stock before it runs out, based on lead time and demand.

Average Usage

The mean amount of a resource or service consumed over a specific period, used for planning and analysis purposes.