![danieldfuenteg732](/avatars/18661.jpg)
danieldfuenteg732
18.04.2020 •
Business
Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 148 Units in beginning inventory 0 Units produced 3,500 Units sold 3,050 Units in ending inventory 450 Variable costs per unit: Direct materials $ 51 Direct labor $ 28 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $ 70,000 Fixed selling and administrative expense $ 27,450 The total gross margin for the month under the absorption costing approach is:
Solved
Show answers
More tips
- H Health and Medicine How to Calculate Your Ideal Weight?...
- S Style and Beauty Discover the Art of Nail Design: How Do You Paint Your Nails?...
- P Philosophy How to Develop Extrasensory Abilities?...
- O Other Everything You Need to Know About Kudyabliks...
- C Computers and Internet The Twitter Phenomenon: What it is and How to Use it...
- C Computers and Internet How to Choose a Laptop: Expert Guide and Tips...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
Answers on questions: Business
- B Business Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out...
- B Business Recycling is primarily an example of an issue facing businesses today \ a. human resource b. natural resource c. ethical d.social...
- B Business Recycling is Primarily an example of a issue facing businessess. a. human resource b. natural resource c. ethical d. social...
- B Business Cửa hàng cần một người lãnh đạo chứ không phải là giám sát...
- B Business A37.0-$kg$ body is moving in the direction of the positive x axis with a speed of 342 $m/s$ when, owing to an internal explosion, it breaks into three pieces. one...
- B Business Question 5 of 10 3 points which job category is likely to deal primarily with supply chains? o a. marketing manager o b. sales manager o c. logistician o d. art...
- B Business In most cases, workers who lose their jobs receive___...
- B Business Ducky Float Corporation would like to start a new project: manufacturing voice-activated ducky floats for fancy hotel pools. This ducky float project will require...
- C Computers and Technology When multiple architects work on a construction plan, which section of a construction plan will help them keep track of when the changes are made and by whom? A....
- H Health PLEASE HELP!! 11. Compare and contrast the characteristics of bipolar and major depressive disorder. What would a therapist need to know about the client in order...
Ответ:
The total gross margin for the month under the absorption costing approach is$ 125200
Explanation:
Gabuat Corporation,
Income Statement
Absorption Costing
Sales $ 148 * 3050 = $ 451400
Less Cost of Goods Sold
Opening Inventory $000
Add Variable Cost of Goods Manufactured ( 3500 *(51+28+5=84))=
$ 294000
Fixed Manufacturing Costs = $ 70,000
Cost of Goods Available For Sale = $ 364,000
Less Ending Inventory (450*84)= $ 37800
Cost of Goods Sold 326200
Gross Margin 125,200
Less
Variable selling and administrative expense $ 7* 3050= 21350
Fixed selling and administrative expense $ 27,450
Net Operating Income 76,400
The total gross margin for the month under the absorption costing approach is: $ 125200
In absorption costing the fixed manufacturing costs are included in the product cost whereas in the variable costing the fixed manufacturing costs are treated as period costs.
We have added the fixed manufacturing costs to the COGS and separated the selling and administrative expense which are both fixed and variable.
Ответ: