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Calculation of gross margin in absorption and marginal costing.
Gregson Enterprises, in its 1st year of operations, reported the following information:
Selling price per unit
$100
Direct material per unit
5
Direct labor per unit
1
Unit-related overhead per unit
6
Selling cost per unit
2
Batch-related overhead for the year
500,000
Facility-sustaining overhead for the year
800,000
Fixed administrative cost for the year
650,000
Units produced
20,000
Units sold
15,000
What is Gregson absorption costing gross margin and profit?
What is Gregson variable contribution margin and profit?
What is Gregson ending inventory using absorption costing?
What is Gregson ending inventory using variable costing?
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