Reference no: EM132755186

Problem - Answer the following question using the information below.

Pederson Company reported the following:

Manufacturing costs $2,000,000

Units manufactured 50,000

Units sold 47,000 units sold for $75 per unit

Beginning inventory 0 units

Q1) What is the average manufacturing cost per unit?

A) $40.00

B) $42.55

C) $75.50

D) $35.00

E) $42.25

Q2) What is the amount of gross margin?

A) $1,750,000

B) $3,525,000

C) $3,405,000

D) $1,645,000

E) $1,525,000

Q3) What is the amount of finished goods inventory?

A) $2,000,000

B) $12,000

C) $225,000

D) $127,659

E) $120,000