Question

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet answered Points out of 31.00 Flag question Variable and Absorption Costing Scott Manufacturing makes only one product with total unit manufacturing costs of $57, of which $39 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $89 per unit, and the cost structure did not change. Scott uses the first-in first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 90,000 120,000 130,000 2015 120,000 2016 a. Prepare gross profit computations for 2015 and 2016 using absorption costing Do not use negative signs with your answers Absorption Costing 2015 2016 Sales Cost of goods sold Beginning inventory 8,010,000 11,570,00 Production 4,680,000 4,680,000 Goods available 4,680,000

Answer 1

2015 8010000 2016 11570000 sales cost of goods sold beginning inventory production goods available ending inventory cost of goods sold gross profit 6840000 6840000 1710000 5130000 2880000 1710000 6840000 8550000 1140000 7410000 4160000