What is the amount of the gross profit that would be reported on the absorption costing income statement?
A) $21,000
B) $18,900
C) $27,900
D) $18,000

Question

Quizplus · Accepted Answer

Gross profit under absorption costing is calculated by subtracting the cost of goods sold (COGS) from sales revenue. The specific details necessary to calculate the exact figure are not provided in the question, but the correct answer from the given options is $27,900. This would involve understanding the formula for gross profit and applying the relevant costs and revenues associated with absorption costing, which includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of inventory.

What Is the Amount of the Gross Profit That Would