#1

Selected data concerning the past year's operations of Burner Corporation are as follows:

Selling and administrative expenses	$225,000
Direct materials used	397,500
Direct labor	450,000

	Inventories
	Jan. 1	Dec. 31
Direct materials	$36,000	$42,000
Work in process	75,000	84,000
Finished goods	69,000	57,000

The cost of direct materials purchased is:

a.$405,000.

b.$397,500.

c.$403,500.

d.$367,500.

#2

Wright & Boyle Inc. had the following income statement for the month of May:

Sales revenue	$470,800.00
Cost of goods sold	217,766.40
Gross margin	$253,033.60
Less:
Selling expenses	86,199.20
Administrative expenses	74,942.80
Operating income	$91,891.60

What was the sales revenue percent?

a.16%

b.100%

c.48%

d.52%