Question

Ramort Company reports the following cost data for its single product. The company regularly sells 16,000 units of its product at a price of $52.00 per unit. $ $ 9.20 per unit 11.20 per unit 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) $ 2.20 per unit $14,400.00 $ $ 1.20 per unit 64,400 16,000 units Compute gross margin under absorption costing. (Round unit cost amounts to 2 decimal places.) Production volume 16,000 units Cost of goods sold: Cost of goods sold per unit Number of units sold Total cost of goods sold RAMORT COMPANY Income Statement (partial) Sales volume 16,000 units

Answer 1

Solution:

Cost of goods sold	Production volume
	16000 units
Direct materials	$9.20
Direct labor	$11.20
Variable manufacturing overhead	$2.20
Fixed manufacturing overhead per unit	$0.90
Cost of goods sold per unit	$23.50
Nos of units sold	16000
Total cost of goods sold	$376,000.00
Ramort Company
Income Statement (Partial)
Particulars	Sales volume
	16000 units
Sales	$832,000.00
Cost of goods sold	$376,000.00
Gross Profit	$456,000.00