The following information applies to Hawks Corporation: Beginning Inventory 0 Units Ending Inventory 4,000 units Units produced 40,000 units Direct labor per unit $22 Direct materials per unit $15 Variable manufacturing overhead per unit $5 Fixed manufacturing overhead per unit $12 Variable operating expenses per unit $10 Fixed operating expenses $80,000 Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported? Question 8 options: a) $504,000. b) $1,908,000. c) $1,548,000. d) $1,476,000.
The following information applies to Hawks Corporation: Beginning Inventory 0 Units Ending Inventory 4,000 units Units produced 40,000 units Direct labor per unit $22 Direct materials per unit $15 Variable manufacturing overhead per unit $5 Fixed manufacturing overhead per unit $12 Variable operating expenses per unit $10 Fixed operating expenses $80,000 Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported? Question 8 options: a) $504,000. b) $1,908,000. c) $1,548,000. d) $1,476,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information applies to Hawks Corporation:
Beginning Inventory 0 Units
Ending Inventory 4,000 units
Units produced 40,000 units
Direct labor per unit $22
Direct materials per unit $15
Variable manufacturing
Fixed manufacturing overhead per unit $12
Variable operating expenses per unit $10
Fixed operating expenses $80,000
Using absorption costing, what will Hawks record as gross margin if the units were sold for $95 each and assuming no variances were reported?
Question 8 options:
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education