Required information Use the following information for the Exercise below. (Static) [The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $35 per unit $ 25 per unit $10 per unit Gross profit using absorption costing Sales Cost of goods sold Gross profit $ 48,000 per year $ 3 per unit $ 20,000 per year Exercise 19-5 (Static) Computing gross profit at different production levels LO P2 The company sells its product for $150 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units. (a) 2,000 Units Produced (b) 2,400 Units Produced and 2,000 Units Sold and 2,000 Units Sold $ 300,000 $ 300,000

Required information Use the following information for the Exercise below. (Static) [The following information apples to the questions displayed below] Barnes Company reports the following for its prockuct for its first vear of operations. Exercise 19.5 (Static) Computing gross profit at different production levels LO P2 The company sells its product for $150 per unit compute gross proft using absorption costing assuming the company fou produces and sells 2.000 units and (b) produces 2,400 units and sells 2,000 units