Cost-Accounting-gross-margin-in-absorption-costing -v2 by ClassOf1


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									              Sub: Accounts                                                                     Topic: Cost Accounting


              Calculation of gross margin in absorption and marginal costing.

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              Gregson Enterprises, in its 1st year of operations, reported the following information:

                Selling price per unit                                                $100
                Direct material per unit                                                  5
                Direct labor per unit                                                     1
                Unit-related overhead per unit                                            6
                Selling cost per unit                                                     2
                Batch-related overhead for the year                                 500,000
                Facility-sustaining overhead for the year                           800,000
                Fixed administrative cost for the year                              650,000
                Units produced                                                       20,000
                Units sold                                       
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