Saved A manufacturing company that produces a single product has prowided the fo

Question

Saved A manufacturing company that produces a single product has prowided the following dita concerming its most g dita concerning its most recent month of operations Belling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable coats per unit: $ 148 3,200 2,870 330 Direct materials Direct labor Variable sanufacturing overhead Variable selling and administrative expense 5 45 23 19 $112, 000 Pixed costs: riced·anufacturing overhead Pixed se1ling and administrative expense $34, 440 The total goss margin for the month under sorption costing is Mutiple Chbice $144 180 54 980 109060 hp

Explanation / Answer

Calculate total gross margin :

so answer is c) $109060

Sales 424760 Less: Cost of goods sold Direct material (129150) Direct labour (66010) Variable manufacturing overhead (20090) Fixed manufacturing overhead (112000/3200)*2870 (100450) Gross margin 109060

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