Fresco Bottling Works manufactures glass bottles. January began with 10,000 units carried at ...

January manufacturing cost per unit:

Beginning inventory [(($71,500-(10,000 x$4))/10,000] + $4   $ 7.15
Production ($192,500/55,000) + $4    $ 7.50
    
February manufacturing cost per unit:
Beginning inventory   $ 7.50
Production ($180,000/50,000) + $4   $ 7.60   
   Income Statement
   January
Sales (45,000 × $11)      $495,000
Cost of goods sold (10,000 × $7.15) + (35,000 × $7.50)   334,000
Gross margin      $161,000
Other costs:
Variable selling and administrative   $15,750
Fixed selling and administrative   70,000   85,750
Operating income      $75,250

   Income Statement
   February
Sales (45,000 × $11)      $495,000
Cost of goods sold (20,000 × $7.50) + (25,000 × $7.60)   340,000
Gross margin      $155,000
Other costs:
Variable selling and administrative   $15,750
Fixed selling and administrative   70,000   85,750
Operating income      $69,250

I see. Hmm...

Thanks for confirming, will mark this solved.