Question
1.The following data are available for Ruggles Company for the year ended September 30, 2011. Sales:24,000 units at Php50 each Expected and actual production:30,000 units
1.The following data are available for Ruggles Company for the year ended September 30, 2011.
Sales:24,000 units at Php50 each
Expected and actual production:30,000 units
Manufacturing costs incurred:
Variable:Php525,000
Fixed:Php372,000
Nonmanufacturing costs incurred:
Variable:Php144,800
Fixed:Php77,400
Beginning inventories:none
Required:
a.Determine operating income using the variable-costing approach.
b.Determine operating income using the absorption-costing approach.
c.Explain why operating income is not the same under the two approaches.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a VariableCosting Approach Under the variablecosting approach only variable costs are included in product costs Fixed costs are treated as period cost...
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Step: 2
Step: 3
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
