Preston Manufacturing has provided the following data for June: Description Sales Fixed Cost of Goods Sold Variable Cost of Goods Sold Fixed Selling and Administrative Costs Amount ($) $1,250,000 $150,000 $320,000 $110,000 Variable Selling and Administrative Costs $140,000 Calculate the gross margin for June under absorption costing. • A. $920,000 • B. $780,000 • C. $930,000 • D. $700,000

Preston Manufacturing has provided the following data for June: Description Sales Fixed Cost of Goods Sold Variable Cost of Goods Sold Fixed Selling and Administrative Costs Amount ($) $1,250,000 $150,000 $320,000 $110,000 Variable Selling and Administrative Costs $140,000 Calculate the gross margin for June under absorption costing. • A. $920,000 • B. $780,000 • C. $930,000 • D. $700,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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