A Company Has the Following Information for Its First Month

A company has the following information for its first month of operations: $$\begin{array} { l r } \text { Raw materials used } & \$ 37,500 \\\text { Sales } \$ 97.50 \text { per unit) } & \$ 117,000 \\\text { Direct labor } & \$ 63,000 \\\text { Variable factory overhead } & \$ 25,500 \\\text { Fixed factory overhead } & \text { unknown } \\\text { Variable selling and administrative } & \$ 4,500 \\\text { Fixed selling and administrative } & \$ 7,500 \\\text { Gross profit } & \$ 35,000 \\\text { Contribution margin } & \text { unknown }\end{array}$$ The company sold half of the units it produced.____ is the cost of goods sold under absorption costing.

A) $45,000
B) $117,000
C) $82,000
D) $63,000

Correct Answer:

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