Sanchez Company Has No Beginning and Ending Inventories,and Reports the Following

question 7

Multiple Choice

Sanchez Company has no beginning and ending inventories,and reports the following data about its only product:
$\begin{array}{ll}\text { Direct materials used } & \$ 100,000 \\\text { Direct labor } & \$ 80,000 \\\text { Fixed indirect manufacturing } & \$ 100,000 \\\text { Fixed selling and administrative } & \$ 170,000 \\\text { Variable indirect manufacturing } & \$ 20,000 \\\text { Variable selling and administrative } & \$ 90,000 \\\text { Selling price(per unit) } & \$ 100\end{array}$
$\begin{array} { l } \text {Units produced and sold }&12,000 \\\end{array}$

Sanchez Company uses the absorption approach to prepare the income statement.What is the manufacturing cost of goods sold?

• A) $270,000
• B) $300,000
• C) $390,000
• D) $500,000

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Definitions:

Hypothetical Questions

Inquiries based on imagined or speculative scenarios, often used to explore potential reactions or outcomes.

Initial Client Interview

The first formal meeting between a lawyer and a potential client to discuss the case, gather information, and evaluate the legal situation.

Hostile Witness

A witness who is biased against your client or friendly toward your client’s adversary in a lawsuit or other legal proceeding. An adverse witness.

Adverse Witness

A witness in a legal proceeding whose testimony is expected to be unfavorable or damaging to the party who has called them to testify.