Question

Question 23 2 pts Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs were
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Gross Margin = Sales - Cost of Goods Sold

= (100*6000) - [(21*6000)+50,000]

= 600,000 - 176,000

= 424,000

Option A is the answer

Comment if you face any issues
Add a comment
Know the answer?
Add Answer to:
Question 23 2 pts Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs...

    Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs were $50,000, and variable production costs amounted to $21 per unit. Fixed selling and administrative costs totaled $20,000, and variable selling and administrative costs amount to $3.00 per unit. Dawson produced and sold 6,000 units last month. Refer to Exhibit 5-7. Which of the following amounts represents total selling and administrative costs? Group of answer choices $18,000 $38,000 $20,000 $386,000 None of the answer...

  • Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs...

    Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs were $50,000, and variable production costs amounted to $21 per unit. Fixed selling and administrative costs totaled $20,000, and variable selling and administrative costs amount to $3.00 per unit. Dawson produced and sold 6,000 units last month. Refer to Exhibit 5-7. Which of the following amounts represents total cost of goods sold? Group of answer choices $176,000 $126,000 $164,000 $424,000

  • Last month, Pioneer Company sold its product for $50 per unit. Fixed production costs were $20,000,...

    Last month, Pioneer Company sold its product for $50 per unit. Fixed production costs were $20,000, and variable production costs amounted to $8.00 per unit. Fixed selling and administrative costs totaled $13,000, and variable selling and administrative costs amount to $3.00 per unit. Pioneer produced and sold 4,000 units last month. Required: (1) Prepare a traditional income statement for Pioneer Industries. (2) Prepare a contribution margin income statement for Pioneer Industries. (3) Why do companies use the contribution margin income...

  • Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units....

    Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $ 170,000 Direct labor $ 110,000 Variable manufacturing overhead $ 200,000 Fixed manufacturing overhead $ 240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...

  • Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units....

    Krepps Corporation produces a single product. Last year, Krepps manufactured 33,910 units and sold 28,100 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $247,543 $176,332 $284,844 474,740 Sales totaled $1,405,000 for the year, variable selling and administrative expenses totaled $148,930, and fixed selling and administrative expenses totaled $247,543. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was:

  • Krepps Corporation produces a single product. Last year, Krepps manufactured 35,250 units and sold 29,700 units....

    Krepps Corporation produces a single product. Last year, Krepps manufactured 35,250 units and sold 29,700 units. Production costs for the year were as follows: Direct materials $ 257,325 Direct labor $ 179,775 Variable manufacturing overhead $ 267,900 Fixed manufacturing overhead $ 634,500 Sales totaled $1,351,350 for the year, variable selling and administrative expenses totaled $151,470, and fixed selling and administrative expenses totaled $257,325. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per...

  • XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per...

    XYZ Inc. sells a single product for $10 per unit. Variable production costs are $5 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $2 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What were XYZ's total selling costs incurred last period? What was XYZ's net income last month? What is XYZ's contribution margin per unit? What were XYZ's total production costs incurred last...

  • Bonita Industries sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $3000,...

    Bonita Industries sells its product for $7100 per unit. Variable costs per unit are: manufacturing, $3000, and selling and administrative, $100. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2015–2017. Sales were 20 units in 2015, 16 units in 2016, and 24 units in 2017. Income under absorption costing for 2016 is

  • 66 Aaron Corporation, which has only one product, has provided the following data concerning its most...

    66 Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 127 Units in beginning inventory 0 Units produced 6,650 Units sold 6,350 Units in ending inventory 300 Variable costs per unit: Direct materials $ 19 Direct labor $ 49 Variable manufacturing overhead $ 13 Variable selling and administrative expense $ 13 Fixed costs: Fixed manufacturing overhead $ 179,550 Fixed selling and administrative expense $ 26,100 What is...

  • Krepps Corporation produces a single product. Last year, Krepps manufactured 30,030 units and sold 24.700 units...

    Krepps Corporation produces a single product. Last year, Krepps manufactured 30,030 units and sold 24.700 units Production costs for the year were as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $243,243 $126, 126 $237,237 $420,420 Sales totaled $1,272,050 for the year, variable selling and administrative expenses totaled 5133,380, and fixed selling and administrative expenses totaled $195,195. There was no beginning inventory Assume that direct laboris a variable cost. Under absorption costing, the ending inventory for the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT