Question
8. Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable
8. Bryans Corporation has provided the following data for its two most recent years of operation:
Selling price per unit | $ 53 |
Manufacturing costs: |
|
Variable manufacturing cost per unit produced: |
|
Direct materials | $ 13 |
Direct labor | $ 6 |
Variable manufacturing overhead | $ 5 |
Fixed manufacturing overhead per year | $ 63,000 |
Selling and administrative expenses: |
|
Variable selling and administrative expense per unit sold | $ 4 |
Fixed selling and administrative expense per year | $ 71,000 |
| Year 1 | Year 2 |
Units in beginning inventory | 0 | 3,000 |
Units produced during the year | 9,000 | 7,000 |
Units sold during the year | 6,000 | 7,000 |
Units in ending inventory | 3,000 | 3,000 |
The net operating income (loss) under absorption costing in Year 2 is closest to:
$146,000
$118,000
$47,000
$41,000
Ans: $47,000
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