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Beginning inventory of finished goods 0 Units produced (no work in process) 22,000 Units sold 18,000 Units in ending inventory of finished goods 4,000 Sales
Beginning inventory of finished goods 0
Units produced (no work in process) 22,000
Units sold 18,000
Units in ending inventory of finished goods 4,000
Sales price $55 per unit
Variable manufacturing costs $25 per unit manufactured
Variable selling and administrative expenses $7 per unit sold
Fixed manufacturing costs for the year $110,000
Fixed selling and administrative expenses for the year $124,000
Using the absorption method, the gross profit on sales is:
$550,000
$540,000
$480,000
$450,000
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