Given the Following Data, Calculate the Gross Profit Using the Average-Cost

question 83

Multiple Choice

Given the following data, calculate the gross profit using the average-cost method, if the selling price was $20 per unit.

• A)$851.71
• B)$634.78
• C)$359.60
• D)$283.90

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Definitions:

Manufacturing Process

A sequence of operations involving the conversion of raw materials into finished goods.

Materials Inventory

The raw materials, work-in-process, and finished goods that a company holds for the purpose of production.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of goods.

Factory Machinery

Heavy equipment and tools used in a manufacturing or production environment to produce goods.