Using the Following Information, Calculate Net Profit Before Tax

question 41

Multiple Choice

Using the following information, calculate net profit before tax.

• A) $160 000.
• B) $200 000.
• C) $220 000.
• D) $260 000.

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Definitions:

Finished Goods Inventory

Items that have completed the manufacturing process and are ready for sale to customers.

Direct Labour

Direct Labour refers to the work exerted by employees who are directly involved in the production of goods or services.

Work in Process

Inventory that includes all items that are in the process of being produced but are not yet complete.

Product Costs

Costs that are directly tied to the production of goods, including materials, labor, and overhead.