Over the Top,Inc

question 43

Multiple Choice

Over the Top,Inc.sells hats to upscale retailers around the world.Information about inventory is contained in the table below.The company uses a FIFO perpetual inventory system. Determine the gross profit.

• A)$42,000
• B)$34,750
• C)$30,500
• D)$30,2500

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Definitions:

Process Cost Summary

A document that aggregates and summarizes the total costs associated with a specific stage of production in process costing.

Materials Costs

The expenses associated with the raw materials used in the manufacturing of products or goods.

Canning Department

A section within a manufacturing process focused on the preservation of food by sealing it in airtight containers.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale.