Brutus Corporation, a Newly Formed Corporation, Has the Following Transactions

question 179

Multiple Choice

Brutus Corporation, a newly formed corporation, has the following transactions during May, its first month of operations.

-Using the table provided, calculate total sales, cost of goods sold, gross profit, and ending inventory using each of the LIFO perpetual inventory method.

• A) Total sales: $56,975.00 Cost of goods sold: $36,431.25 Gross profit: $20,543.75 Ending inventory: $19,981.2
• B) Total sales: $56,975.00 Cost of goods sold: $36,587.50 Gross profit: $20,387.50 Ending inventory: $19,825.00
• C) Total sales: $56,975.00 Cost of goods sold: $37,312.50 Gross profit: $19,662.50 Ending inventory: $19,573.25
• D) Total sales: $56,975.00 Cost of goods sold: $37,401.75 Gross profit: $19,573.25 Ending inventory: $19,010.75

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Definitions:

Relevant Range

The level of activity or volume over which the specific cost assumptions (fixed and variable costs) are valid.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or business activity.

Manufacturing Overhead

The sum of all costs associated with the production process that cannot be directly traced to specific products, such as maintenance expenses, factory utilities, and property taxes; it's crucial for calculating the total cost of production.