During April, the Meade Enterprises Had the Following Operating Results

question 136

Multiple Choice

During April, the Meade Enterprises had the following operating results:
$$\begin{array} { l r r } \text { Sales revernue } & \$ 1,500,000 \\\text { Gross margin } & \$ 600,000 \\\text { Ending work-in-process inventory } & \$ 50,000 \\\text { Beginning work-in-process inventory } & \$ 80,000 \\\text { Ending finished goods inventory } & \$ 100,000 \\\text { Beginnirng finished goods inventory } & \$ 125,000 \\\text { Marketing costs } & \$ 250,000 \\\text { Administrative costs } & \$ 150,000\end{array}$$
What is the cost of goods manufactured for April?

• A) $900,000
• B) $875,000
• C) $925,000
• D) $905,000

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Definitions:

Period Costs

Period costs are expenses that are not directly tied to the production of goods and are instead charged to the accounting period in which they are incurred, such as selling and administrative expenses.

Insurance Expense

The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.

Factory Building

A structure purposely designed and constructed for manufacturing operations, housing machinery, equipment, and workers.

Product Cost

The total expense incurred to produce a product, inclusive of direct materials, labor, and overhead costs.