Clissold Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$120 |
|
Units in beginning inventory |
0 |
|
Units produced |
3,900 |
|
Units sold |
3,500 |
|
Units in ending inventory . |
400 |
|
Variable costs per unit: |
|
|
Direct materials |
$46 |
|
Direct labor |
$47 |
|
Variable manufacturing overhead |
$7 |
|
Variable selling and administrative |
$4 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$42,900 |
|
Fixed selling and administrative |
$3,500 |
The total gross margin for the month under the absorption costing approach is:
A) $31,500
B) $56,000
C) $14,000
D) $75,900