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A Company Has the Following Information for Its First Month

question 120

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A company has the following information for its first month of operations:  Raw materials used $25,000 Sales ($65 per unit)  $78,000 Directlabor $42,000 Variable factory overhead $17,000 Fixed factory overheadunknown Variable sellingand  administrative $3,000 Fixed sellingand administrative $5,000 Gross profit $30,000 Contributionmargin  unknown \begin{array}{ll}\text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } &\$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overheadunknown Variable sellingand }\\\text { administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}

Ending inventories:
Raw materials $7,000 \$ 7,000
WIP none
Finishedgoods \quad\quad 1,200 units were produced during the period.


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