Total Direct Materials Equals $90,000, and There Is No Beginning

question 18

True/False

Total direct materials equals $90,000, and there is no beginning WIP inventory. Units completed are 18,000 with no ending work in process inventory. The direct material cost per unit is $5.00.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses have been deducted.

Net Sales

The revenue from sales transactions after deductions for returns, allowances, and discounts have been made.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

Operating Income

Income generated from regular business operations, excluding expenses such as taxes and interest payments.