Gammil Company Has Beginning and Ending Raw Materials Inventories of $96000

question 183

Multiple Choice

Gammil Company has beginning and ending raw materials inventories of $96000 and $120000 respectively. If direct materials used were $490000 what was the cost of raw materials purchased?

• A) $490000.
• B) $520000.
• C) $466000.
• D) $514000.

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Definitions:

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profit

The disparity between total income and total outlays, considering both manifest and concealed costs.

(P - ATC)q

The formula representing profit in economic terms, where P stands for price, ATC for average total cost, and q for quantity produced or sold.

Total Revenue

The total receipts from sales of a firm's goods or services.