ABC Corp allocates manufacturing costs to products using labor hours as the allocation basis. It provides the following data for the year 201X (there are no beginning inventories):

	Product 1	Product 2
Made	10,000 units	15,000 units
Sold	9,000 units	14,500 units
Price per unit	$75	$100
Variable manufacturing costs	$10 per unit	$12 per unit
Labor hours per unit	3	2
Variable selling costs	$10 per unit	$20 per unit
Fixed manufacturing costs (total)	$900,000
Fixed selling costs (total)	$400,000

Answer the following questions(1-7):

1. What is the cost of goods sold for the year 201X, as would be calculated under GAAP (i.e., as under a gross margin format)?

Select one:

a. $280,000

b. $1,180,000

c. $264,000

d. $1,104,000

e. None of the above

Question 2

What is the value of the inventory at the end of the year 201X under GAAP?

Select one:

a. $16,000

b. $38,500

c. $76,000

d. 0

e. None of the above

Question 3

What are the total product costs incurred in 201X under GAAP?

Select one:

a. $280,000

b. $1,180,000

c. $1,104,000

d. $264,000

e. None of the above

Question 4

What is the total gross margin for 201X that would be reported under GAAP?

Select one:

a. $1,021,000

b. $1,481,000

c. $241,000

d. $181,000

e. None of the above

Question 5

What is the total income for 201X that would be reported under GAAP?

Select one:

a. $1,021,000

b. $1,481,000

c. $241,000

d. $181,000

e. None of the above

Question 6

What is the total contribution margin for 201X that would be reported under GAAP?

a. $1,021,000

b. $1,481,000

c. $241,000

d. $181,000

e. None of the above

Question 7

What is the total income for 201X that would be reported in a contribution margin based income statement?

Select one:

a. $1,021,000

b. $1,481,000

c. $241,000

d. $181,000

e. None of the above