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:

Equivalent

Having the same value, function, or meaning.

December

The last month of the year according to the Gregorian calendar, coming in at number twelve.

Earn

To receive money as payment for work or service.

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The process of revising the terms of an existing agreement, typically to adjust for new circumstances or to gain more favorable terms.