Problem-
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
Additional Requirement-
The problem belongs to Accounting and it describes about calculation of total gross margin under absorption costing.