Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 45 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $43,500 Fixed selling and administrative expense $15,000 The total gross margin for the month under absorption costing is:

Answer 1

The correct answer is "57,500 ".

Step-by-step explanation:

Unit product cost

=
`32 + 45 + 2 + (43500)/(2900)`

=
`94`

Gross margin = Sales - Cost of Goods Sold

=
`(2500* 117) - (2500* 94)`

=
`292,500-235,000`

=
`57,500`