The Gross Margin for Cushing Company for the First Quarter

question 69

Multiple Choice

The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000.The beginning inventory of finished goods was $60,000,and the ending inventory of finished goods was $85,000.What was the cost of goods manufactured for the first quarter?

• A) $375,000.
• B) $350,000.
• C) $400,000.
• D) $385,000.= (700,000 - 325,000)+ 85,000 - 60,000 = $400,000.

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Definitions:

Nonwrongful Dissociation

The act of separating oneself from a partnership, company, or other legal entity without breaching the terms of the agreement or engaging in improper conduct.

Past Debts

Obligations or amounts of money owed that were incurred in the past.

RUPA

Stands for the Revised Uniform Partnership Act, governing the operation of partnerships in the United States.

Termination

The act of ending something, such as a contract, employment, or agreement.