Variable and Absorption Costing

Scott Manufacturing makes only one product with total unit manufacturing costs of $$56,$ of which $$38$ is variable. No units were on hand at the beginning of Year $1.$ During Year $1$ and was sold for $$87$ per unit, and the cost structure did not change. Scott uses the first$-$in$,$ first$-$out inventory method and has the following production and sales for Year $1$ and Year $2$

$\backslash$table$[[,$Units Manufactured Units Sold,$],[$Year $1,120,000,90,000],[$Year $2,120,000,130,000]]$

a$.$ Prepare gross profit computations for Year $1$ and Year $2$ using absorption costing.

Do not use negative signs with your answers.

$\backslash$table$[[$Absorption Costing$],[,,$Year $1,$Year $2],[$Sales$,$$$,7,830,000vv,$$$11,310,000vv$