A Company Has the Following Information for Its First Month

question 76

Multiple Choice

A company has the following information for its first month of operations: $\begin{array}{ll}\text { R aw materials used } & \$ 25,000 \\\text { S ales }(\$ 65 \text { per unit) } & \$ 78,000 \\\text { Direct lab or } & \$ 42,000 \\\text { V ariable factory overhead } & \$ 17,000 \\\text { Fixed factory overhead } & \text { unknown }\\\text { Variable selling and administrative } & \$ 3,000 \\\text { Fixed selling and administrative } & \$ 5,000 \\\text { Gross profit } & \$ 30,000 \\\text { Contribution margin } & \text { unknown }\end{array}$ The company sold half of the units it produced. _ is the cost of goods sold under absorption costing.

• A) $30,000
• B) $42,000
• C) $48,000
• D) $78,000

Comprehend how profits and losses are distributed to NCI.

Identify the types of transactions that require NCI adjustments.

Understand the impact of intragroup services on NCI.

Recognize how changes in equity affect NCI adjustments.

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Definitions:

Ventricular Contraction

The process where the ventricles of the heart contract to pump blood out of the heart.

Arteries

Vessels that transport blood rich in oxygen from the heart to different areas of the body.

Constriction

The act of tightening or narrowing of a passage or opening in the body or any other structure.

Muscular Wall

Structure composed of muscle tissue that makes up part of the body's organs, such as the stomach or heart, enabling movement and function.