The beginning inventory consists of 6,000 units, all of which are sold during the period. The beginning
Question:
The beginning inventory consists of 6,000 units, all of which are sold during the period. The beginning inventory fixed costs are $20 per unit, and variable costs are $90 per unit. What is the difference in in¬ come from operations between variable and ab¬ sorption costing?
A.Variable costing income from operations is $540,000 less than under absorption costing.
B. Variable costing income from operations is
$660,000 greater than under absorption costing.
C. Variable costing income from operations is
$120,000 less than under absorption costing.
D. Variable costing income from operations is
$120,000 greater than under absorption costing.
AppendixLO1
Step by Step Answer:
Financial Accounting
ISBN: 9780324188035
9th Edition
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess