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Roberts, which began business at the start of the current year, had the following data:
Production: 40,000 units
Sales: 37,000 units at $15 per unit
Total Variable Current Manufacturing costs: $160,000
Fixed MOH: $260,000
Selling and administrative costs:
Variable: $37,000
Fixed: $32,000
Beg. WIP: $ 10,000
End. WIP: $ 10,000
Beg. Finished goods: 0
End. Finished goods: $ 31,500
Problem 1: The gross profit that the company would disclose on an absorption-costing income statement is:
Select one:
a. $147,000.
b. $370,000.
c. $166,500.
d. $97,500.
Financial Statement Analysis and Preparation
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