Exercise 19-14 (Algo) Absorption costing and overproduction LO C1 Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.90 per unit $ 9.90 per unit $ 7.40 per unit $ 11.90 per unit $ 1,014,300 per year 1. Compute gross profit assuming (a) 69,000 units are produced and 69,000 units are sold and (b) 98,000 units are produced and 69,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells? Complete this question by entering your answers in the tabs below. Required 1 Required 2 By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells? Gross profit increases by
Exercise 19-14 (Algo) Absorption costing and overproduction LO C1 Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.90 per unit $ 9.90 per unit $ 7.40 per unit $ 11.90 per unit $ 1,014,300 per year 1. Compute gross profit assuming (a) 69,000 units are produced and 69,000 units are sold and (b) 98,000 units are produced and 69,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells? Complete this question by entering your answers in the tabs below. Required 1 Required 2 By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells? Gross profit increases by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 19-14 (Algo) Absorption costing and overproduction LO C1
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses
absorption costing.
Sales price
Direct materials
Direct labor
Variable overhead
Fixed overhead
$ 56.90 per unit
$ 9.90 per unit
$ 7.40 per unit
$ 11.90 per unit
$ 1,014,300 per year
1. Compute gross profit assuming
(a) 69,000 units are produced and 69,000 units are sold and
(b) 98,000 units are produced and 69,000 units are sold.
2. By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
By how much would the company's gross profit increase or decrease from producing 29,000 more units than it sells?
Gross profit
increases
by
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