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:

Sales Contract

A legally binding agreement between buyer and seller detailing the terms and conditions of the sale of goods or services.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with the intention to deceive others and induce them into a contract.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a fundamental aspect of the contract, which under certain conditions, may lead to the contract being voided.

Elements

Fundamental components or aspects that constitute the essential characteristics of something.