ComPrint Co In Addition, Direct Labour Costs of $30,000 Were Incurred, Overhead

question 73

Multiple Choice

ComPrint Co. had the following beginning and ending inventory balances for the year ended December 31: $$\begin{array} { l c c } & \text { January 1 } & \text { December } 31 \\\text { Materials } & \$ 10,000 & \$ 8,000 \\\text { Work in Process } & \$ 18,000 & \$ 17,000 \\\text { Finished Goods } & \$ 21,000 & \$ 16,500\end{array}$$
In addition, direct labour costs of $30,000 were incurred, overhead equalled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. ComPrint Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.

-Refer to the Figure.What was ComPrint's operating income or loss for the year?

• A)$(3,500)
• B)$5,500
• C)$18,500
• D)$125,000

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Definitions:

Mercantilism

An economic theory that emphasizes the importance of stockpiling precious metals and exporting more than importing to boost a nation's wealth and power.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Human Development Index

A statistical tool that measures a country's overall achievement in its social and economic dimensions, based on factors like life expectancy, education, and per capita income levels.

Purchasing Power Parity

An economic theory and a method used to determine the relative value of different currencies and the exchange rate needed to equalize the purchasing power of different currencies.