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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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?
$ 56.90 per unit
$9.90 per unit
$ 7.40 per unit
$ 11.90 per unit
$ 1,014,300 per year
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
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.
Sales
Cost of goods sold
Gross profit
(a) 69,000 Units
Produced and 69,000
Units Sold
$
3,926,100
(b) 98,000 Units
Produced and 69,000
Units Sold
< Required 1
Required 2 >
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