Answer the Following Questions Using the Information Below

question 56

Multiple Choice

Answer the following questions using the information below:
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.
-The contribution income statement highlights:

• A)gross margin
• B)products costs and period costs
• C)different product lines
• D)variable and fixed costs

---

Definitions:

Conversion Costs

Costs incurred to convert raw materials into finished products, generally including direct labor and manufacturing overhead.

Materials Cost

The cost of raw materials and components used to create a product.

Ending Work

Typically refers to the working process or inventory that is still in progress at the end of an accounting period.

Production Cost Report

A detailed document outlining the costs associated with the production of goods, including materials, labor, and overhead.