Question

Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product 1.25 points eBook Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead 78,000 units $ 57.80 per unit $ 10.80 per unit 8.30 per unit $ 12.80 per unit $1,357, 200 in total Hint Ask

Answer 1

Cost of goods sold: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Cost of goods sold per unit Number of units sold Total cost of goods sold Production Volume 78,000 units 116,000 units 10.80$ 10.80 8.30 $ 8.30 12.80 $ 12.80 17.40 $ 11.70 49.30 43.60 78,000 78,000 $ 3,845,400$ 3,400,800 Jacquie Inc. Income Statement through Gross Margin Sales Volume 78,000 units 78,000 units Sales ($57.80 per unit) $ 4,508,400 $ 4,508,400 Cost of goods sold $ 3,845,400 $ 3,400,800 Gross margin $ 663,000 $ 1,107,600 $ Gross margin increases by: Number of units sold Change in fixed over head cost per unit Change in cost of goods sold 444,600 78,000 5.70 444,600 $ $