Parker Corp.has developed the following information on product costs and inventories for a three-month period: $\begin{array}{lccc}
&\text { January } & \text { February }& \text {March}\\
\text { Finished goods inventory, }\
\text { units:}\
\text { Beginning } & 15 & 20 & 25 \
\text { Manufactured } & \underline{30}& \underline{45}& \underline{40} \
\text { Available } & 45&65&65\
\text { Sold } & \underline{25} & \underline{40} & \underline{50}\
\text { Ending }& \underline{20}& \underline{25}& \underline{15}
\end{array}$ Manufacturing costs $3,000 $5,000 $4,500
Based on managerial judgment,what is the best predictor of manufacturing costs?
A)beginning inventory
B)units manufactured
C)ending inventory
D)units available

Question

Quizplus · Accepted Answer

Units manufactured are a better predictor of manufacturing costs as they directly relate to the production process and the costs associated with it. Beginning inventory and ending inventory may not accurately reflect the actual manufacturing costs incurred during the period, as they do not consider units manufactured or sold. Units available may also not provide a clear indication of manufacturing costs, as it includes beginning inventory and units manufactured but does not account for ending inventory or units sold. Therefore, units manufactured are the best predictor of manufacturing costs in this scenario.

Parker Corp Manufacturing Costs $3,000 $5,000 $4,500 Based on Managerial Judgment,what Is

Parker Corp Manufacturing Costs $3,000 $5,000 $4,500
Based on Managerial Judgment,what Is