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What is the amount of the gross profit that would be reported on the absorption costing income statement? $25,000 $28,500 $16,000 $19,500

What is the amount of the gross profit that would be reported on the absorption costing income statement? $25,000 $28,500 $16,000 $19,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business operated at 100% of capacity during its first month, with the following results: Sales (95 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $25,000 $28,500 $16,000 $40,000 $19,500 20,000 3,000 7.000 $ 8,000 1,000 What is the amount of the gross profit that would be reported on the absorption costing income statement? $95,000 70,000 9,000
Transcribed Image Text:A business operated at 100% of capacity during its first month, with the following results: Sales (95 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $25,000 $28,500 $16,000 $40,000 $19,500 20,000 3,000 7.000 $ 8,000 1,000 What is the amount of the gross profit that would be reported on the absorption costing income statement? $95,000 70,000 9,000
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