S21A-24 (similar to)

, Inc. has the following cost data for Product X, and unit product cost using absorption costing when production isunits,units, andunits.

(Click on the icon to view the cost data.)

Data Table

Direct materials

$34

per unit

Direct labor

60

per unit

Variable manufacturing overhead

10

per unit

Fixed manufacturing overhead

15,000

per year

(Click on the icon to view the unit product cost data.)

Reference

500 units IS THE FIRST

1,000 units IS THE SECOND

1,500 units IS THE THIRD

Direct materials

1) $34

2) $34

3) $34

Direct labor

1)60

2)60

3)60

Variable manufacturing overhead

1)10

2)10

3)10

Fixed manufacturing overhead

1)30

2)15

3)10

Total unit product cost

1)$134

2)$119

3)$114

Product X sells for 199per unit.

Read the requirements

Requirements

Calculate the gross profit using absorption costing when Abrey:

a.Produces and sells 500 units.

b.Produces 1,000 units and sells 500 units.

c.Produces 1,500 units and sells 500 units.

Begin by selecting the labels and computing the gross profit for scenario a. and then compute the gross profit for scenario b. and c.