Glass Industries Reported the Following Data for the Year Just

question 79

Multiple Choice

Glass Industries reported the following data for the year just ended: sales revenue, $1,750,000; cost of goods sold, $980,000; cost of goods manufactured, $560,000; and selling and administrative expenses, $170,000. Glass' gross margin would be:

• A) $940,000.
• B) $1,190,000.
• C) $1,020,000.
• D) $380,000.
• E) $770,000.

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Definitions:

Sales Budgets

Detailed projections of a company’s sales revenue for a specific period, used for planning and control purposes.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected cost during a specific period.

Manufacturing Overhead Budget

A planned document detailing the expected manufacturing overhead costs for a specific period, helping managers in the decision-making process regarding the allocation of resources.

Sales Budget

A detailed forecast of future sales, typically the first step in the budgeting process, driving the company's production, workforce, and financial planning.