A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$123 |
|
Units in beginning inventory |
0 |
|
Units produced |
5,900 |
|
Units sold |
5,700 |
|
Unit in ending inventory |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$40 |
|
Direct labor |
$32 |
|
Variable manufacturing overhead |
$3 |
|
Variable selling and administrative |
$5 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$135,700 |
|
Fixed selling and administrative |
$108,300 |
The total gross margin for the month under the absorption costing approach is:
A) $245,100
B) $162,100
C) $142,500
D) $5,700