Question

Ramort Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $60 per unit. ► 10 per unit 12 per unit ይ ቆ Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead per year Selling and administrative costs for the year Variable Fixed Normal production level (in units) 3 per unit $40,000 ቃ $ 2 per unit $65,200 20,000 units Compute gross margin under absorption costing. Answer is not complete. Cost of goods sold: Fixed overhead per unit Direct materials per unit Direct labor per unit Production volume 20,000 units 40,000.00 % 200,000.00 X 240,000.00 X Cost of goods sold per unit Number of units sold Total cost of goods sold $ 480,000.00 20,000 $ 9,600,000,000 RAMORT COMPANY Income Statement (partial) Sales volume 20,000 units $ 1,200,000 (9,600,000,000) Sales Cost of goods sold Gross margin

Answer 1

Cost of goods sold:	20000 units
Direct materials per unit	10
Direct labor per unit	12
Variable overhead per unit	3
Fixed overhead per unit	2	=40000/20000
Cost of goods sold per unit	27
Number of units sold	20000
Total Cost of goods sold	540000
Income Statement(Partial)
Sales	1200000
Cost of goods sold	540000	or (540000)
Gross margin	660000