Tisdale Company Started the Year with the Following Beginning Account

question 56

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 was allocated to work in process.There was no over- or underapplied overhead.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:

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