Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable manufacturing
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 1 is closest to:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started