Tisdale Company Started the Year with the Following Beginning Account

question 81

Multiple Choice

Tisdale Company started the year with the following beginning account balances: Raw Materials Inventory, $42,000; Work in Process Inventory, $90,000; and Finished Goods Inventory, $20,000. During the year, the company purchased $60,000 of raw materials and ended the year with $16,000 of raw materials. Direct labor costs for the year were $120,000 and a total of $36,000 of manufacturing overhead costs were incurred. Ending work in process was $82,000 and ending finished goods was $35,000. Goods were sold to customers during the year for $360,000. How much gross margin would be reported for the year?

• A) $110,000
• B) $145,000
• C) $125,000
• D) $171,000

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Definitions:

Competition Section

A segment within a business plan or report that analyzes the competitive landscape, detailing the strengths and weaknesses of competitors within the market.

Larger Market Share

The portion of a market controlled by a particular company or product, with a larger extent signifying dominance or a significant competitive advantage.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing goals and objectives.