(Algo) The following information applies to the questions displayed below.] Zamort Company reports the following for its single product. Ramort produced and sold 20,600 units this y Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses. Fixed selling and administrative expenses Sales price $ 13 per unit $ 15 per unit $ 6 per unit 41,200 per year $ $ 2 per unit $ 65,800 per year
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![### Required Information
#### Use the following information for the Quick Study below. (Algo)
[The following information applies to the questions displayed below.]
Ramort Company reports the following for its single product. Ramort produced and sold 20,600 units this year.
- **Direct materials:** $13 per unit
- **Direct labor:** $15 per unit
- **Variable overhead:** $6 per unit
- **Fixed overhead:** $41,200 per year
- **Variable selling and administrative expenses:** $2 per unit
- **Fixed selling and administrative expenses:** $65,800 per year
- **Sales price:** $69 per unit
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### QS 19-9 (Algo) Computing Gross Profit Under Absorption Costing
Compute gross profit under absorption costing.
#### RAMORT COMPANY
**Gross Profit (Absorption Costing)**
[Table with fields for input]
- [Field 1]
- [Field 2]
- [Field 3]
- [Field 4]
(Note: The table appears intended for filling in financial calculations related to absorption costing.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F941b30af-546b-4880-af23-011522407041%2F929b4cf0-6e50-4c25-bf94-d3f2b1d29473%2Fsr37m3s_processed.jpeg&w=3840&q=75)
Solution:
Under absorption costing, fixed manufacturing overhead is also a product cost therefore it would be expensed as and when units are sold and therefore, deferred in ending inventory. Gross profit is based on sales and cost of goods sold.
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