Use the Information Below to Answer the Following Questions That

question 17

Multiple Choice

Use the information below to answer the following questions that refer to Table B-2. Based on the information in Table B-2, net sales are:
$$\begin{array} { l c } { \text { Table B-2 } } & \\\text { Gross sales } & \$ 240,000 \\\text { Returns } & \$ 20,000 \\\text { Allowances } & \$ 20,000 \\\text { Gross margin } & 25 \% \\\text { Beginning inventory } & \$ 50,000 \\\text { Ending inventory } & \$ 50,000 \\\text { Expenses } & \$ 40,000 \\\text { Markdowns } & \$ 30,000 \\\text { Investment } & \$ 50,000\end{array}$$

Calculate ending balances in the Raw Materials and Work in Process accounts, considering transactions recorded.

Understand and apply the principles of standard costing in manufacturing.

Calculate and analyze direct materials variances.

Calculate and analyze direct labor variances.

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Definitions:

Ethical Concerns

Pertains to moral principles that govern a person's behaviour or the conducting of an activity, especially relevant in areas affecting human well-being.

Covertly

In a hidden or concealed manner; done secretly or without open acknowledgment.

Descriptive

Related to describing or giving an account of something in words, including detailed information or characteristics.