Vortex Solutions Inc. reports the following information for August: Sales: $920,000 • Fixed Cost of Goods Sold: $110,000 • . • Variable Cost of Goods Sold: $260,000 Fixed Selling and Administrative Costs: $105,000 (Not used in gross margin under absorption costing) Variable Selling and Administrative Costs: $130,000 (Not used in gross margin under absorption costing) Calculate the gross margin for August under absorption costing:

Vortex Solutions Inc. reports the following information for August: Sales: $920,000 • Fixed Cost of Goods Sold: $110,000 • . • Variable Cost of Goods Sold: $260,000 Fixed Selling and Administrative Costs: $105,000 (Not used in gross margin under absorption costing) Variable Selling and Administrative Costs: $130,000 (Not used in gross margin under absorption costing) Calculate the gross margin for August under absorption costing:

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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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