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

question 9

Multiple Choice

Use the information below to answer the following question(s) .Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00, direct manufacturing labour is $6.00, and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 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 barbell requires one-quarter hour of direct labour, and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2019:

-On the 2019 budgeted income statement, what amount will be reported for gross margin?

• A)$45,000
• B)$70,000
• C)$25,000
• D)$40,000
• E)$35,000

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Definitions:

Conception

The process of a sperm fertilizing an ovum, resulting in the beginning of a pregnancy.

Age Of Viability

The age at which the fetus may survive if born prematurely; begins about 22 weeks after conception.

Neonatal Nurse

A nurse specializing in the care of newborn babies, particularly the ill or premature, during the first month of life.

Premature

Occurring or done before the usual or proper time; too early.