Brush Industries reports the following information for May: Sales Fixed cost of goods sold $9,30,000 $ 1,06,000 Variable cost of goods sold $ 2,56,000 Fixed selling and administrative costs $ 1,06,000 Variable selling and administrative costs $ 1,31,000 Calculate the gross margin for May under absorption costing. a. $674,000 b. $343,000 c. $555,000 d. $568,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

I need help with question

Brush Industries reports the following information for May:
Sales
Fixed cost of goods sold
$9,30,000
$ 1,06,000
Variable cost of goods sold
$ 2,56,000
Fixed selling and administrative costs
$ 1,06,000
Variable selling and administrative costs
$ 1,31,000
Calculate the gross margin for May under absorption costing.
a. $674,000
b. $343,000
c. $555,000
d. $568,000
Transcribed Image Text:Brush Industries reports the following information for May: Sales Fixed cost of goods sold $9,30,000 $ 1,06,000 Variable cost of goods sold $ 2,56,000 Fixed selling and administrative costs $ 1,06,000 Variable selling and administrative costs $ 1,31,000 Calculate the gross margin for May under absorption costing. a. $674,000 b. $343,000 c. $555,000 d. $568,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education