Apparent Corp. has developed the following information on product costs and inventories for a three-month period: $\begin{array}{llll}
&\text { April } & \text { May } & \text { June }\
\text { Finished goods inventory, units: }\
\text { Beginning } & 20 & 25 & 30 \
\text { Manufactured } & \underline{25} & \underline{40} & \underline{35} \
\text { Available } & 45 & 65 & 65 \
\text { Sold } & 25 & 40 & 50 \
\text { Ending } & \underline{20} & \underline{25} & \underline{15}
\end{array}$ Manufacturing costs $4,000 $6,000 $5,500
Based on managerial judgment, the best predictor of manufacturing costs is
A)beginning inventory.
B)units manufactured.
C)ending inventory.
D)units available.

Question

Quizplus · Accepted Answer

The best predictor of manufacturing costs is the number of units manufactured, as the manufacturing costs directly correlate with the production volume. The costs provided ($4,000, $6,000, $5,500) increase with the number of units manufactured (25, 40, 35), indicating a direct relationship between manufacturing costs and units produced.

Apparent Corp Manufacturing Costs $4,000 $6,000 $5,500 Based on Managerial Judgment, the and Inventories

Apparent Corp Manufacturing Costs $4,000 $6,000 $5,500
Based on Managerial Judgment, the and Inventories