Calculation of gross margin in absorption and marginal costing.
Gregson Enterprises, in its 1st year of operations, reported the following information:
|
Selling price per unit
|
$100
|
|
Direct material per unit
|
5
|
|
Direct labor per unit
|
1
|
|
Unit-related overhead per unit
|
6
|
|
Selling cost per unit
|
2
|
|
Batch-related overhead for the year
|
500,000
|
|
Facility-sustaining overhead for the year
|
800,000
|
|
Fixed administrative cost for the year
|
650,000
|
|
Units produced
|
20,000
|
|
Units sold
|
15,000
|
What is Gregson absorption costing gross margin and profit?
What is Gregson variable contribution margin and profit?
What is Gregson ending inventory using absorption costing?
What is Gregson ending inventory using variable costing?