Question

Brush Industries reports the following information for May: Sales $ 915,000​ Fixed cost of goods sold 103,000​ Variable cost of goods sold 253,000​ Fixed selling and administrative costs 103,000​ Variable selling and administrative costs 128,000​ Calculate the gross margin for May under absorption costing.

Answer 1

$559,000

Step-by-step explanation:

Data provided as per the question below:-

Sales = $915,000

Variable cost of goods sold = $253,000

Fixed cost of goods sold = $103,000

The computation of gross margin is shown below:-

Gross Margin = Sales - Variable cost of goods sold - Fixed cost of goods sold

= $915,000 - $253,000 - $103,000

= $915,000 - $356,000

= $559,000