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Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of candy of which 8,000 were sold. Based on this information Brock would recognize which of the following amounts of expense on its income statement?

$4,000.
$9,000.
$7,200.
None of the above.

Respuesta :

Based on the information provided, Brock Company would recognize $9,000 as the expense on its income statement. This includes the costs of raw materials ($3,000), labor ($4,000), and overhead costs ($2,000) incurred to make the candy. So the correct answer is B) $9,000.

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