Peterson Company's records for the year ended December 31 show that no finished goods inventory existed at

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Peterson Company's records for the year ended December 31 show that no finished goods inventory existed at January 1 and no work was in process at the beginning or end of the year

Net sales $1,400,000 Manufacturing costs:Variable 630,000 Fixed 315,000 Operating expenses: Variable 98,000 Fixed 140,00

Under the absorption costing method, Peterson's operating income for the year is
A. $307,000
B. $374,500
C. $217,000
D. $352,000

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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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Question Posted: Jan 05, 2018 10:47 AM

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Peterson Company's records for the year ended December 31 show that no finished goods inventory existed at

Question:

Net sales $1,400,000 Manufacturing costs:Variable 630,000 Fixed 315,000 Operating expenses: Variable 98,000 Fixed 140,000 Units manufactured 70,000 Units sold 60,000

Step by Step Answer:

D is correct In absorption costing the unit costs include both fixed and var...View the full answer

Principles of Accounting

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