Use the Information Below to Answer the Following Question(s)

question 62

Multiple Choice

Use the information below to answer the following question(s) .Daniel Inc.expects to sell 6,000 ceramic vases for $20 each in 2018.Direct materials costs are $2, direct manufacturing labour is $10, and manufacturing overhead is $3 per vase.Each vase requires 0.5 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.Each vase requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2018:

-On the 2018 budgeted income statement, what amount will be reported for gross margin?

• A)$122,000
• B)$90,000
• C)$48,000
• D)$30,000
• E)$120,000

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Definitions:

Woody Plants

Plants characterized by the presence of wood as a structural tissue and include trees, shrubs, and vines.

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The physical, chemical, and biological status of the soil, affecting its ability to support plant life.

Rosy Periwinkle

A plant known for its medicinal properties, used in the treatment of certain cancers through its alkaloid compounds.

Madagascar

An island country located off the southeastern coast of Africa, known for its unique biodiversity and endemic species.