The Following Information Pertains to Ball Company 39 800 Units Are Sold During the Year for $100

question 165

Essay

The following information pertains to Ball Company:
$$\begin{array} { l r } \text { Manufacturing costs } & \$ 2400000 \\\text { Units manufactured } & 40000 \\\text { Beginuning inventory } & 0 \text { units }\end{array}$$
39 800 units are sold during the year for $100 per unit.
Required:
a.What is the average manufacturing cost per unit?
b.What is the cost of ending finished goods inventory?
c.What is the gross margin?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Income Taxes

Taxes imposed by a government on the income generated by individuals or entities, which can vary based on the income level and type.

Income Before Tax

The total earnings of a company before taxes have been deducted.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. It is calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Current Ratio

A financial metric that compares a company's current assets to its current liabilities, indicating how well it can cover its short-term obligations.