Operating Budgets for the DiP Company Reveal the Following Information

question 91

Multiple Choice

Operating budgets for the DiP Company reveal the following information: net sales,$400,000;beginning materials inventory,$23,000;materials purchased,$185,000;beginning work in process inventory,$64,700;beginning finished goods inventory,$21,600;direct labor costs,$34,000;overhead applied,$67,000;ending work in process inventory,$61,200;ending materials inventory,$18,700;and ending finished goods inventory,$16,300.Compute DiP Company's budgeted gross margin.

• A)$299,800
• B)$293,800
• C)$150,900
• D)$100,900

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Definitions:

Potential Consumers

Individuals or groups who are likely to buy a product or service but have not yet made the purchase.

Retail Price

The total cost that a customer pays for a product or service when purchased through a retail channel, including overheads and profit margins.

Structural Risk

A measure of a firm’s difficulty when relationships with vendors do not work as expected.

Remote Employees

Individuals who are part of an organization's workforce but operate from a non-centralized location, leveraging technology to complete their tasks.