Ambrose Industries Inc Under Absorption Costing,what Is the Gross Profit?
A) $0
B)

Multiple Choice

Ambrose Industries Inc.reported the following information about the production and sale of its only product during the first month of operations:
$\begin{array}{ll}\text { Selling price per unit } & \$ 225,00 \\\text { Sales } & \$ 360,000 \\\text { Direct materials used } & \$ 176,000 \\\text { Direct labor } & \$ 100,000\\\text { Variable factory overhead } & \$ 44,000 \\\text { Fixed factory overhead } & \$ 80,000 \\\text { Variable selling and administrative expenses } & \$ 20,000 \\\text { Fixed selling and administrative expenses } & \$ 10,000 \\\text { Production volume variance } & 0 \\\text { Ending inventory, Direct Materials } & 0 \\\text { Ending inventory, Work-in-process } & 0\\\text { Ending inventory, Finished Goods }&400 \text { units }\end{array}$
Under absorption costing,what is the Gross Profit?

A) $0
B) $40,000
C) $84,000
D) $104,000