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Essay text:
The gross margin was:
1. $55,000.
2. $54,000.
3. $50,000.
4. $40,000.
2. The beginning finished goods inventory was:
1. $24,000.
2. $ 9,000.
3. $10,000.
4. $14,000.
3. The ending work in process inventory was:
1. $ 4,000.
2. $ 8,000.
3. $10,000.
4. $0.
4. Farber Company uses a job order cost system. The information below is from the financial records of the company for last year:
Total manufacturing costs $2,500,000
Cost of goods manufactured $2,425,000
Predetermined overhead rate 80% of direct labor cost
Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31...
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