19. Using the information below, calculate gross profit for the period: Sales revenues for the period Operating expenses for the period Finished Goods Inventory, January 1 Finished Goods Inventory, December 31 Cost of goods manufactured for the period a. $774,000. b. $769,000. C. $530,000. d. $$35,000. e. $448,000. $1,304,000 239,000 36,000 41,000 $40,000 20. Factor Co. can produce a unit of product for the following costs: Direct material $8 Direct labor 24 Overhead 40 Total costs per unit $72 An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to: a. Buy since the relevant cost to make it is $56. b. Make since the relevant cost to make it is $48. C. Buy since the relevant cost to make it is $48. d. Make since the relevant cost to make it is $32.
19. Using the information below, calculate gross profit for the period: Sales revenues for the period Operating expenses for the period Finished Goods Inventory, January 1 Finished Goods Inventory, December 31 Cost of goods manufactured for the period a. $774,000. b. $769,000. C. $530,000. d. $$35,000. e. $448,000. $1,304,000 239,000 36,000 41,000 $40,000 20. Factor Co. can produce a unit of product for the following costs: Direct material $8 Direct labor 24 Overhead 40 Total costs per unit $72 An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to: a. Buy since the relevant cost to make it is $56. b. Make since the relevant cost to make it is $48. C. Buy since the relevant cost to make it is $48. d. Make since the relevant cost to make it is $32.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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gross profit questions. please explain steps used.
Transcribed Image Text:19. Using the information below, calculate gross profit for the period:
Sales revenues for the period
Operating expenses for the period
Finished Goods Inventory, January 1
Finished Goods Inventory, December 31
Cost of goods manufactured for the period
a. $774,000.
b. $769,000.
C. $530,000.
d. $$35,000.
e. $448,000.
$1,304,000
239,000
36,000
41,000
540,000
20. Factor Co. can produce a unit of product for the following costs:
Direct material
$8
Direct labor
24
Overhead
40
Total costs per unit $72
An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the
supplier, the company will still incur 60% of its overhead. Factor should choose to:
a. Buy since the relevant cost to make it is $56.
b. Make since the relevant cost to make it is $48.
C. Buy since the relevant cost to make it is $48.
d. Make since the relevant cost to make it is $32.
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