A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 45 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $ 43,500 Fixed selling and administrative expense $ 15,000 The total gross margin for the month under absorption costing is: $57,500 $72,500 $95,100 $20,000
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 45 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $ 43,500 Fixed selling and administrative expense $ 15,000 The total gross margin for the month under absorption costing is: $57,500 $72,500 $95,100 $20,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
The total gross margin for the month under absorption costing is:
| Selling price | $ | 117 |
| Units in beginning inventory | 0 | |
| Units produced | 2,900 | |
| Units sold | 2,500 | |
| Units in ending inventory | 400 | |
| Variable costs per unit: | ||
| Direct materials | $ | 32 |
| Direct labor | $ | 45 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative expense | $ | 9 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 43,500 |
| Fixed selling and administrative expense | $ | 15,000 |
The total gross margin for the month under absorption costing is:
|
$57,500
|
||
|
$72,500
|
||
|
$95,100
|
||
|
$20,000
|
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