What the gross profit that the company would disclose

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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.

Reference no: EM132715595

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