Calculate Total Gross Margin Under Absorption Costing
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Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price |
$139 |
|
Units in beginning inventory |
0 |
|
Units produced |
2,990 |
|
Units sold |
2,760 |
|
Units in ending inventory |
230 |
|
Variable cost per unit: |
|
|
Direct materials |
$50 |
|
Direct labor |
$15 |
|
Variable manufacturing overhead |
$12 |
|
Variable selling and administrative |
$9 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$107,640 |
|
Fixed selling and administrative expenses |
$24,840 |
The total gross margin for the month under absorption costing is:
a. $71,760
b. $22,080
c. $135,480
d. $146,280
Summary
The question belongs to Accounting and it discusses about calculation of total gross margin under absorption costing.
Total Word Count 29
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