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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:

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Answer:

The correct answer is "57,500 ".

Explanation:

Unit product cost

= [tex]32 + 45 + 2 + \frac{43500}{2900}[/tex]

= [tex]94[/tex]

Gross margin = Sales - Cost of Goods Sold

                       = [tex](2500\times 117) - (2500\times 94)[/tex]

                       = [tex]292,500-235,000[/tex]

                       = [tex]57,500[/tex]