A Company Has the Following Information for Its First Month

question 57

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } &\$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overheadunknown Variable sellingand }\\\text { administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}$

Ending inventories:
Raw materials $\$ 7,000$
WIP none
Finishedgoods $\quad$$\quad$ 1,200 units The cost of goods sold under variable costing is:

• A) $96,000
• B) $84,000
• C) $42,000
• D) $48,000

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Definitions:

Long-Term Memory

Long-term memory is the component of the memory system capable of storing large amounts of information for periods ranging from days to a lifetime.

Hierarchy

A system in which members of an organization or society are ranked according to relative status or authority.

Common Features

Attributes or characteristics that are shared among a group of objects, concepts, or phenomena.

Information Processing

A psychological approach studying the mind analogously to a computer, focusing on how information is perceived, processed, and stored.