There Were No Beginning and Ending Inventories

question 162

Multiple Choice

$\begin{array}{lr}\text { Production in units } & 3,000 \\\text { Direct materials cost } & \$ 7,000 \\\text { Direct labor cost } & \$ 10,000 \\\text { Overhead cost } & \$ 9,600 \\\text { Sales commission per unit sold } & \$ 4 \\\text { Price per unit sold } & \$ 29 \\\text { Fixed selling and administrative expense } & \$ 7,000\end{array}$ There were no beginning and ending inventories.
-Refer to Figure 9-5. What is gross margin for Sully Company last month?

• A) $54,000
• B) $64,600
• C) $32,400
• D) $47,400
• E) $60,400

---

Definitions:

Estimate

The process of making an educated guess or calculation based on limited information.

Automobile Accident

A collision involving one or more vehicles, which may result in injury, death, or property damage.

Prospective Memory

The aspect of memory that involves the ability to remember to perform actions in the future, such as remembering to attend an appointment.

Event-Based Tasks

Activities designed or occurring in response to specific events or situations, often requiring problem-solving or decision-making based on those events.