Question
16. Variable CostingSales Exceed Production The beginning inventory is 22,200 units. All of the units that were manufactured during the period and 22,200 units of
16. Variable CostingSales Exceed Production
The beginning inventory is 22,200 units. All of the units that were manufactured during the period and 22,200 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $62 per unit, and variable manufacturing costs are $111 per unit.
a. Determine whether variable costing operating income is less than or greater than absorption costing operating income.
Variable costing operating income is greater than absorption costing. Variable costing operating income is less than absorption costing.
b. Determine the difference in variable costing and absorption costing operating income. $ ( )
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