Jantore Industries Inc The Company Sold One-Half of the Units It Produced

question 61

Multiple Choice

Jantore Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:
$\begin{array}{ll}\text { Selling price per unit } & \$ 65,00 \\\text { Sales } & \$ 78,000 \\\text { Direct materials used } & \$ 25,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factory overhead } & \$ 17,000 \\\text { Fixed factory overhead } & \$ 15,000 \\\text { Variable selling and administrative expenses } & \$ 3,000 \\\text { Fixed selling and administrative expenses } & \$ 5,000 \\\text { Production volume variance } & 0\end{array}$
The company sold one-half of the units it produced.Under absorption costing,what is the cost of goods sold?

• A) $30,000
• B) $42,000
• C) $49,500
• D) $78,000