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Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 135 Units in
Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price | $ | 135 | |
Units in beginning inventory | 0 | ||
Units produced | 3,200 | ||
Units sold | 2,660 | ||
Units in ending inventory | 540 | ||
Variable costs per unit: | ||
Direct materials | $ | 53 |
Direct labor | $ | 23 |
Variable manufacturing overhead | $ | 7 |
Variable selling and administrative expense | $ | 8 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 41,600 |
Fixed selling and administrative expense | $ | 26,600 |
The total gross margin for the month under the absorption costing approach is:
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