Figure 2-7

question 159

Multiple Choice

Figure 2-7. Gateway Company produces a product with the following per-unit costs:
Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000.
Refer to Figure 2-7.Cost of goods sold last year was?

• A)$47,500
• B)$25,500
• C)$14,250
• D)$51,000

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Definitions:

Unearned Rent

Income received by an entity for rent that has not yet been earned, typically because the period of tenancy has not yet occurred.

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.

Salaries Payable

A liability account representing the amount of wages owed to employees for work performed but not yet paid.

Liability Account

A financial accounting term representing the debts or obligations of a company incurred during business operations.