Question

Abbon, Inc. has the following cost data for Product X and unit product cost using absorption costing when production is 200 units 500 units and 1 000 units Click on the icon to view the cost data (Click on the icon to view the unit product cost data) Product X sells for $224 per unit Read the requirements Begin by selecting the labels and computing the grous profit for scenario a and the compute the gross profit for scenario bando Absorption costing Gross Pro Choose from any list or enter any number in the input Delds and then continue to the next question

Answer 1

Ans.	Absorption Costing	a	b	c
	Sales	$44,800	$112,000	$224,000
	Less: Cost of goods sold	$31,200	$63,000	$116,000
	Gross profit	$13,600	$49,000	$108,000
	*Calculations for Sales and Cost of goods sold:
		a	b	c
	Sales	200 * $224	500 * $224	1000 * $224
	Cost of goods sold	200 * $156	500 * $126	1000 * $116
	*Sales = Units produced and sold * Unit selling price
	*Cost of goods sold = Units produced and sold * Unit product cost