Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data: Cost Data Production costs (15,000 units): Units $ per unit Total $ Direct materials 15,000 $10 $150,000 Direct labor 15,000 12 $180,000 Variable factory overhead 15,000 8 $120,000 Fixed factory overhead - 3 $45,000 Total production costs - - $495,000 Operating expenses: - - - Variable selling and administrative expenses 13,000 5 $65,000 Fixed selling and administrative expenses - - $40,000 Total operating expenses - - $105,000 There was no inventory on hand at the beginning of the quarter. If 13,000 units are sold during the quarter at a price of $45 per unit, what would be the amount of gross profit to be reported in the absorption costing income statement? Group of answer choices $455,000 $156,000 $45,000 $130,000
Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data: Cost Data Production costs (15,000 units): Units $ per unit Total $ Direct materials 15,000 $10 $150,000 Direct labor 15,000 12 $180,000 Variable factory overhead 15,000 8 $120,000 Fixed factory overhead - 3 $45,000 Total production costs - - $495,000 Operating expenses: - - - Variable selling and administrative expenses 13,000 5 $65,000 Fixed selling and administrative expenses - - $40,000 Total operating expenses - - $105,000 There was no inventory on hand at the beginning of the quarter. If 13,000 units are sold during the quarter at a price of $45 per unit, what would be the amount of gross profit to be reported in the absorption costing income statement? Group of answer choices $455,000 $156,000 $45,000 $130,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rene Inc. has capacity to produce 15,000 units of inventory. It operated at 100% capacity during the second quarter of the current year and provided the following cost data:
Cost Data| Production costs (15,000 units): | Units | $ per unit | Total $ |
|---|---|---|---|
| Direct materials | 15,000 | $10 | $150,000 |
| Direct labor | 15,000 | 12 | $180,000 |
| Variable factory |
15,000 | 8 | $120,000 |
| Fixed factory overhead | - | 3 | $45,000 |
| Total production costs | - | - | $495,000 |
| Operating expenses: | - | - | - |
| Variable selling and administrative expenses | 13,000 | 5 | $65,000 |
| Fixed selling and administrative expenses | - | - | $40,000 |
| Total operating expenses | - | - | $105,000 |
There was no inventory on hand at the beginning of the quarter. If 13,000 units are sold during the quarter at a price of $45 per unit, what would be the amount of gross profit to be reported in the absorption costing income statement?
Group of answer choices
$455,000
$156,000
$45,000
$130,000
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