Use the Information Above to Answer the Following Question

question 106

Multiple Choice

Use the information above to answer the following question.Which of the following statements is true?

• A)The sales revenue is $1,500.
• B)The gross profit is $1,500.
• C)The cost of goods sold is $1,500.
• D)The net income is $1,500.

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Definitions:

Direct Labor Costs

Expenses directly associated with the labor used in producing goods or services, including wages for employees who work on the production line.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor.

Work in Process Inventory

Goods that are partially completed in the manufacturing process but are not yet finished products.

Direct Labor

The work performed by individuals directly involved in the manufacturing of goods or provision of services.