Use the Following Information to Determine the Gross Margin for Pacific

question 56

Essay

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands of dollars):
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 31,800 \\\hline \text { Purchases of direct materials } & \$ 7,000 \\\hline \text { Direct labour } & \$ 5,000 \\\hline \text { Work in process, } 1 / 1 & \$ 800 \\\hline \text { Work in process, } 1 / 31 & \$ 3,000 \\\hline \text { Finished goods inventory, } 1 / 1 & \$ 4,000 \\\hline \text { Finished goods inventory, } 1 / 31 & \$ 5,300 \\\hline \text { Accounts payable, } 1 / 1 & \$ 1,700 \\\hline \text { Accounts payable, } 1 / 31 & \$ 1,500 \\\hline \text { Direct materials inventory, } 1 / 1 & \$ 6,000 \\\hline \text { Direct materials inventory, } 1 / 31 & \$ 1,000 \\\hline \text { Indirect labour } & \$ 600 \\\hline \text { Indirect materials used } & \$ 500 \\\hline \text { Utilities expense, factory } & \$ 1,900 \\\hline \text { Depreciation on factory equipment } & \$ 3,500 \\\hline\end{array}$

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Definitions:

Teres Major

A muscle of the upper limb that assists in the adduction and medial rotation of the arm.

Deltoid

A voluminous, triangle-formed muscle encasing the shoulder joint, essential for arm lifting and allowing for the shoulder's motion span.

Pectoralis Major

The pectoralis major is a large chest muscle that contributes to arm flexion, rotation, and the movement of the shoulder.

Pelvic Diaphragm

A muscular sheet at the base of the pelvis, consisting mainly of the levator ani and the coccygeus muscles, which supports pelvic organs.