Information from the Records of Chrome Ponies Enterprises for June

question 29

Multiple Choice

Information from the records of Chrome Ponies Enterprises for June 2018 is as follows: $\begin{array}{lr}\text { Sales } & \$ 41,000 \\\text { Direct labor } & 10,000 \\\text { Selling and administrative expenses } & 7,000 \\\text { Direct materials purchases } & 6,000 \\\text { Factory overhead } & 13,500\end{array}$

$\begin{array} { l r r } & { \text { Inventories } } \\& \text { June 1,2018 } & \text { June } 30,2018 \\& \$ 1,200 & \$ 1,400 \\\text { Direct materials } & 2,500 & 2,800 \\\text { Work in process } & 2,300 & 1,900\end{array}$ What is the gross margin (profit) ?

• A)$11,500
• B)$11,600
• C)$ 4,500
• D)$ 4,600

---

Definitions:

Calculators

Electronic or mechanical devices designed to perform mathematical operations, ranging from basic calculations to complex computations.

Export

The act of sending goods or services from one country to another country for sale or trade.

Jamaica

An island country situated in the Caribbean Sea, known for its rich culture, music, and scenic beauty.

Trade Policy

A government's strategy regarding international trade, affecting how goods and services move across borders through tariffs, trade agreements, and regulations.