Q7 Denton Company manufactures and sells a single product. Cost data for the...
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Accounting
Q7
Denton Company manufactures and sells a single product. Cost data for the product are given Variable costs per uni t: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 12 $ 22 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month 120,000 175,000 $ 295,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 24,000 24,000 Units Sold 20,000 28,000 July August The company's Accounting Department has prepared the following absorption costing income statements for July and August July August Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $980,000 1,372,000 480,000 672,000 500,000 235,000 2531000_ 700,000 $ 265,000 441,000
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