Question one
1- The Singer Company manufactures several different products. Costs associated with
10,000 units of Product X are as follows:
Direct materials $ 60,000
Direct manufacturing labor 10,000
Variable manufacturing overhead 18,000
Fixed manufacturing overhead 32,000
Sales commissions (2% of sales) 4,000
Administrative salaries 16,000
Revenues 200,000
Required:
a) What are the variable costs?
b) What are the fixed costs?
c) What are the inventoriable costs?
d) What are the period costs?
e) Calculate gross margin?
f) Calculate operating income.