Matthew Company has a sales budget for next month of $400,000. Cost of goods sold is expected to be 40% of sales. All units are paid for in the month following purchase. The beginning inventory is $5,000 and an ending inventory of $12,000 is desired. Beginning accounts payable is $76,000. The cost of goods sold for next month is:

A) $220,000

B) $160,000

C) $172,000

D) $140,000

Cost of goods sold are B. $160000

Explanation:

The cost of goods sold is the cost that is associated with the inventory that is being sold in a particular period. It is the value of inventory that is recorded in books following a certain inventory valuation method. The cost of goods sold normally comprises of Opening Inventory + Purchases - Closing Inventory.

We are already given a ratio of Cost of goods sold to sales which is 40%. This means that out of the budgeted sales of 400000 for the next month, the 40% will comprise the cost of goods sold. Thus the cost of goods sold is,

Cost of goods sold = 400000 * 0.4 = $160000

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported