Gadzuk Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$123 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,900 |
|
Units sold |
1,600 |
|
Units in ending inventory . |
300 |
|
Variable costs per unit: |
|
|
Direct materials |
$32 |
|
Direct labor |
$55 |
|
Variable manufacturing overhead |
$1 |
|
Variable selling and administrative |
$6 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$43,700 |
|
Fixed selling and administrative |
$1,600 |
The total gross margin for the month under the absorption costing approach is:
A) $19,200
B) $46,400
C) $52,500
D) $8,000