A company had total revenue of $169000 in a period from the sale of 6,500 units of its single product.There was no finished goods inventory at the beginning of the period and 200 units were in inventory at the end of the period.Production costs in the period were:Variable costs $93130,fixed costs $41540….Fixed costs are absorbed on an actual basis using units produced.What was the gross profit in the period?..please do the math for me.
Does the kit answer not explain the answer?
No.That’s why asked you.It did the math only.But did not explain how?
6,700 units made (6,500 + 200)
TAC per unit = (93,130 + 41,540)/6,700 = 20.1
Cost of sales = 20.1 x 6,500 = 130,650
GP = 169,000 – 130,650 = 38,350
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