A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced 2$ 138 3,390 Units sold 2,840 Units in ending inventory Variable costs per unit: Direct materials 550 24 51 Direct labor 2$ 16 Variable manufacturing overhead Variable selling and administrative expense 24 14 2$ 10 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $115,260 $ 17,940 The total gross margin for the month under absorption costing is: Multiple Choice $65,320
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced 2$ 138 3,390 Units sold 2,840 Units in ending inventory Variable costs per unit: Direct materials 550 24 51 Direct labor 2$ 16 Variable manufacturing overhead Variable selling and administrative expense 24 14 2$ 10 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $115,260 $ 17,940 The total gross margin for the month under absorption costing is: Multiple Choice $65,320
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
7-4
Transcribed Image Text:The total gross margin for the month under absorption costing is:
Multiple Choice
$65,320
$19,880
$122,680
$133.480
Transcribed Image Text:A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price
Units in beginning inventory
Units produced
24
138
3,390
Units sold
2,840
Units in ending inventory
Variable costs per unit:
Direct materials
550
24
51
Direct labor
2$
16
Variable manufacturing overhead
Variable selling and administrative expense
$
14
2$
10
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative expense
$115,260
$ 17,040
The total gross margin for the month under absorption costing is:
Multiple Choice
$65,320
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education