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Chown Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $110 |
| | |
| Units in beginning inventory | 0 |
| Units produced | 8,000 |
| Units sold | 7,800 |
| Units in ending inventory | 200 |
| | |
| Variable costs per unit: | |
| Direct materials | $22 |
| Direct labor | $31 |
| Variable manufacturing overhead | $3 |
| Variable selling and administrative | $4 |
| Fixed costs: | |
| Fixed manufacturing overhead | $248,000 |
| Fixed selling and administrative | $140,400 |
The total gross margin for the month under the absorption costing approach is:
$196,800
$179,400
$390,000
$7,800
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