I need help with requirement 2. Academy Press produces textbooks for high school accounting...

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Accounting

imageimageimageimageI need help with requirement 2.

Academy Press produces textbooks for high school accounting courses. The company recently hired a new editor, Jean Green, to handle production and sales of books for an introduction to accounting course. Jean's compensation depends on the gross margin associated with sales of this book. Jean needs to decide how many copies of the book to produce. The following information is available for the fall semester 2017: i (Click the icon to view the information.) Jean has decided to produce either 15,000, 21,000, or 31,500 books. Read the requirements. i More Info Estimated sales 15,000 books Beginning inventory O books O Average selling price $81 per book Variable production costs $52 per book Fixed production costs $255,000 per semester The fixed-cost allocation rate is based on expected sales and is therefore equal to $255,000/15,000 books = $17 per book. Requirement 1. Calculate expected gross margin if Jean produces 15,000, 21,000, or 31,500 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Calculate the gross margin for each level of production. Begin with 15,000 books, then 21,000 books, and lastly 31,500 books. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) 31,500 books 15,000 books $1,215,000 21,000 books $ 1,215,000 Revenues $ 1,215,000 Cost of goods sold 1,035,000 1,035,000 1,035,000 0 Production-volume variance 102,000 F 280,500 F Net cost of goods sold 1,035,000 933,000 754,500 Gross margin $ 180,000 $ 282,000 $ 460,500 Requirement 2. Calculate ending inventory in units and in dollars for each production level. (Complete all answer boxes. For amounts with a "0" unit or dollar balance, make sure to enter "O" in the appropriate cell.) 15,000 books Beginning inventory books Production Sales Ending inventory books Cost per book Cost of ending inventory

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