The following information was extracted from the accounting records of Pickin and Grinnin, LLC, a manufacturer of
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Question:
The following information was extracted from the accounting records of Pickin and Grinnin, LLC, a manufacturer of guitars:
Beginning Raw Materials Inventory | $375,000 |
Ending Raw Materials Inventory | $435,000 |
Direct Factory Labor | $185,000 |
Indirect Factory Labor | $35,000 |
Factory Utilities | $44,000 |
Selling, General, and Administrative Expenses | $125,000 |
Building - Depreciation* | $300,000 |
- 70% of the building is devoted to production, 30% of the building is devoted to selling and administrative functions.
1. $403,345 in direct materials were purchased during the period.
2. Raw Materials Inventory consists solely of direct material.
3. There was a $46,272 net increase in the company's Work in Process inventories during the year.
4. The company's beginning and ending finished goods inventories were $475,000 and $450,000, respectively.
Based solely on the above information,
What is the company's gross profit for the period assuming sales revenue totaled $1,416,804?
A. 2,375,421
B. 1,555,421
C. 405,731
D. 1,552,877
E. 620,731
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date: