A Small Engine Repair Shop Purchased Materials Costing $9,000 in July

question 152

Multiple Choice

A small engine repair shop purchased materials costing $9,000 in July. The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000. Payments for direct labor for July totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and $2,000 for the franchise name. Revenue for July was $50,000.
What is the cost of services sold for July?

• A)$41,500
• B)$43,500
• C)$50,500
• D)$40,500

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Definitions:

Economists

Professionals who study the production, distribution, and consumption of goods and services.

Procrastinate

The action of delaying or postponing tasks or decisions, often leading to stress or missed deadlines.

Consistent

Referring to the characteristic of being steady, reliable, and uniform over time.

Over Time

This term refers to the concept of a duration or period extending beyond the usual or expected time, often used in contexts ranging from work hours to the study of change.