Exercise 6-14 (Algo) Absorption costing and overproduction LO C1

Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing.

Sales price	$ 56.30	per unit
Direct materials	$ 9.30	per unit
Direct labor	$ 6.80	per unit
Variable overhead	$ 11.30	per unit
Fixed overhead	$ 812,700	per year

1. Compute gross profit assuming (a) 63,000 units are produced and 63,000 units are sold and (b) 86,000 units are produced and 63,000 units are sold.
2. By how much would the companys gross profit increase or decrease from producing 23,000 more units than it sells?

lax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses ibsorption costing. 1. Compute gross profit assuming (a) 63,000 units are produced and 63,000 units are sold and (b) 86,000 units are produced and 63,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 23,000 more units than it sells? Complete this question by entering your answers in the tabs below. Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. 1. Compute gross profit assuming (a) 63,000 units are produced and 63,000 units are sold and (b)86,000 units are produced and 63,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 23,000 more units than it sells? Complete this question by entering your answers in the tabs below. Compute gross profit assuming (a) 63,000 units are produced and 63,000 units are sold and (b)86,000 units are produced and 63,000 units are sold