Compute the gross margin for the year

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Question - MNO Company manufactures shoes. Last year, direct materials costing $700,000 were put into production. Direct labor of $800,000 was incurred and overhead equaled $400,000. The company had operating income for the year of $100,000 and manufactured 190,000 shoes and sold 180,000 shoes at a sales price of $18 per unit. Assume that there were no beginning inventory balances in the work in process and finished goods inventory accounts.

Required:

A. Compute the gross margin for the year.

B. Compute the selling and administrative expenses for the year.

C. Assume production amounted to 200,000 shoes and 180,000 were sold. Compute cost of goods sold.

D. Assume production amounted to 200,000 fishing rods and 180,000 were sold. Compute the balance in ending finished goods inventory.

Reference no: EM131731515

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