Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $147
Units in beginning inventory 0
Units produced 2,200
Units sold 1,910
Units in ending inventory 290

Variable costs per unit:

Direct materials $47
Direct labor $34
Variable manufacturing overhead $5
Variable selling and administrative expense $6

Fixed costs:
Fixed manufacturing overhead $39,600
Fixed selling and administrative expense $15,280

The total gross margin for the month under the absorption costing approach is:________

Sagot :

Answer:

Gross Margin $82,130

Explanation:

The computation of the gross margin under the absorption costing approach is as follows:

Sales ($147 × 1,910 units) $280,770

Less:  

Direct Material ($47 × 1,910 units) $89,770

Direct Material ($34 x 1,910 units) $64,940

Variable Manufacturing Overhead ($5 × 1,910 units) $9,550

Fixed Manufacturing Overhead ($39,600 ÷ 2,200 units) × $1,910 units $34,380

Gross Margin $82,130

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.