A company has the following information for its first month of operations: $\begin{array}{lr}
\text { Raw materials used } & \$ 37,500 \
\text { Sales ( } \$ 97.50 \text { per unit) } & \$ 117,000 \
\text { Direct labor } & \$ 63,000 \
\text { Variable factory overhead } & \$ 25,500 \
\text { Fixed factory overhead } & \text { unknown }\
\text { Variable selling and administrative }&\$4,500\
\text { Fixed selling and administrative }&\$7,500\\text { Gross profit }&\$45,000\
\text { Contribution margin }& \text { unknown }\
\end{array}$ The company sold half of the 2,400 units it produced. of factory overhead is included in the ending inventory under absorption costing.

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The Answer of A company has the following information for its first month of operations: $\begin{array}{lr}
\text { Raw materials used } & \$ 37,500 \
\text { Sales ( } \$ 97.50 \text { per unit) } & \$ 117,000 \
\text { Direct labor } & \$ 63,000 \
\text { Variable factory overhead } & \$ 25,500 \
\text { Fixed factory overhead } & \text { unknown }\
\text { Variable selling and administrative }&\$4,500\
\text { Fixed selling and administrative }&\$7,500\\text { Gross profit }&\$45,000\
\text { Contribution margin }& \text { unknown }\
\end{array}$ The company sold half of the 2,400 units it produced. of factory overhead is included in the ending inventory under absorption costing.

A Company Has the Following Information for Its First Month