Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Samson Inc.expects to sell 10,000 barbells for $18.00 each.Direct materials costs are $5.00,direct manufacturing labour is $6.00,and manufacturing overhead is $2.50 per barbell.Each barbell requires 6 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs;the units in beginning inventory are completed before new units are started..Each barbell requires one-quarter hour of direct labour,and manufacturing overhead is allocated based on direct labour hours.Marketing costs are $2.00 per barbell.The following inventory levels are expected to apply to 2016:

-On the 2016 budgeted income statement,what amount will be reported for gross margin?

A) $45,000
B) $70,000
C) $25,000
D) $40,000
E) $35,000

Correct Answer:

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