Wallace,Inc What Would Be the Amount of Sales Dollars at the of $6,000,000

question 130

Multiple Choice

Wallace,Inc.,prepared the following budgeted data based on a sales forecast of $6,000,000:
$\begin{array}{|l|r|r|}\hline & \text { Variable } & \text { Fixed } \\\hline \text { Direct materials } & \$ 1,600,000 & \\\hline \text { Direct labour } & 1,400,000 & \\\hline \text { Factory overhead } & 600,000 & \$ 900,000 \\\hline \text { Selling expenses } & 240,000 &360,000\\\hline \text { Administrative expenses } & \underline{60,000} & \underline{140,000} \\\hline \text { Total } & \$ 3,900,000 & \$ 1,400,000 \\\hline\end{array}$
What would be the amount of sales dollars at the break-even point?

• A) $2,250,000.
• B) $3,500,000.
• C) $4,000,000.
• D) $5,300,000.

Calculate gross profit for a company.

Acknowledge the importance of tracking inventory activities in merchandising companies.

Recognize the period-end adjusting entries required under new revenue recognition standards.

Differentiate between periodic and perpetual inventory accounting systems.