Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 106 Units in beginning inventory 0 Units produced 2,600 Units sold 2,200 Units in ending inventory 400 Variable costs per unit: Direct materials $ 46 Direct labor $ 28 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $ 33,800 Fixed selling and administrative expense $ 8,800 What is the total period cost for the month under the absorption costing? $58,000 $33,800 $24,200 $8,800
Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 106 Units in beginning inventory 0 Units produced 2,600 Units sold 2,200 Units in ending inventory 400 Variable costs per unit: Direct materials $ 46 Direct labor $ 28 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $ 33,800 Fixed selling and administrative expense $ 8,800 What is the total period cost for the month under the absorption costing? $58,000 $33,800 $24,200 $8,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
What is the total period cost for the month under the absorption costing?
| Selling price | $ | 106 |
| Units in beginning inventory | 0 | |
| Units produced | 2,600 | |
| Units sold | 2,200 | |
| Units in ending inventory | 400 |
| Variable costs per unit: | ||
| Direct materials | $ | 46 |
| Direct labor | $ | 28 |
| Variable manufacturing |
$ | 2 |
| Variable selling and administrative expense | $ | 7 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 33,800 |
| Fixed selling and administrative expense | $ | 8,800 |
What is the total period cost for the month under the absorption costing?
|
$58,000
|
||
|
$33,800
|
||
|
$24,200
|
||
|
$8,800
|
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