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Can I recieve help on this? The following table shows the inventory balances, in units, for years 1, 2 and 3. Total fixed manufacturing costs
Can I recieve help on this?
The following table shows the inventory balances, in units, for years 1, 2 and 3. Total fixed manufacturing costs were $44,000 for each of the last five years. The units in Year 1 beginning inventory were based on production of 800 units. Year 2 Beginning inventory Production Sales Ending inventory 300 800 (1,100) 0 0 1,100 (500) 600 3 600 1,100 (1.100) 600 For each year, calculate the difference between absorption costing and variable costing operating income. Indicate which costing system has the higher net income. Year 2 1 0 $ 600 $ 600 Difference in operating income Costing system that has higher net income Neither Absorption Costing Absorption CostingStep by Step Solution
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