required information\nuse the following information for the quick study below. (algo)\ndsouza company sold…

required information\nuse the following information for the quick study below. (algo)\ndsouza company sold 9,000 units of its product for $82.00 per unit. cost of goods sold is $55.20 per unit. each unit had\n$50.40 in variable cost of goods sold and variable selling and administrative expenses are $10.20 per unit.\nqs 19 - 14 (algo) computing gross profit lo p2\ncompute gross profit under absorption costing.

required information\nuse the following information for the quick study below. (algo)\ndsouza company sold 9,000 units of its product for $82.00 per unit. cost of goods sold is $55.20 per unit. each unit had\n$50.40 in variable cost of goods sold and variable selling and administrative expenses are $10.20 per unit.\nqs 19 - 14 (algo) computing gross profit lo p2\ncompute gross profit under absorption costing.

Answer

Explanation:

Step1: Calculate total sales revenue

Total sales revenue = Units sold × Selling price per unit. Given units sold (n = 9000) and selling price per unit (p=$82). Total sales revenue (TR=9000\times82=$738000)

Step2: Calculate total cost of goods sold

Total cost of goods sold = Units sold × Cost of goods sold per unit. Given units sold (n = 9000) and cost of goods sold per unit (c=$55.20) Total cost of goods sold (COGS = 9000\times55.20=$496800)

Step3: Calculate gross profit

Gross profit formula is (GP=TR - COGS) Substitute (TR = 738000) and (COGS=496800) (GP=738000 - 496800=$241200)

Units $ per unit Total
Sales (9000) (82) (738000)
Cost of goods sold (9000) (55.20) (496800)
Gross profit - - (241200)

Answer:

The gross profit under absorption costing is ($241200)