A Company Has the Following Information for Its First Month

question 32

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 37,500 \\\text { Sales }(\$ 97.50 \text { per unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable selling and administrative } & \$ 4,500 \\\text { Fixed selling and adminis trative } & \$ 7,500 \\\text { Gross profit } & \$ 45,000 \\\text { Contribution margin } & \text { unknown }\end{array}$ The company sold half of the units it produced. _ is the cost of goods sold under absorption costing.

• A) $63,000
• B) $45,000
• C) $117,000
• D) $72,000

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Definitions:

Real Objects

Physical, tangible items that can be perceived by the senses, in contrast to virtual or conceptual objects.

Pictures

Images or representations of objects, people, or scenes, produced on a surface, typically by means of photography, painting, drawing, or digital processes.

Preoperational Children

Refers to Piaget's developmental stage where children from approximately 2 to 7 years old start to engage in symbolic play but don't yet understand concrete logic.

Conservationists

Individuals or groups engaged in the protection and preservation of natural resources and ecosystems to ensure their sustainability for future generations.