Question
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 14,000 units. There
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 14,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:
| 2021 | 2022 | |
|---|---|---|
| Units sold | 12,500 | 13,000 |
| Units produced | 14,000 | 14,000 |
| Costs: | ||
| Variable factory overhead per unit | $ 0.15 | $ 0.15 |
| Fixed factory overhead | $ 2,800 | $ 2,800 |
| Variable marketing per unit | $ 0.30 | $ 0.30 |
| Fixed Selling and Administrative | $ 320 | $ 320 |
Variable costing operating income for 2022 is calculated to be:
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Forensic Accounting And Fraud Examination
Authors: Mary Jo Kranacher, Richard Riley
2nd Edition
1119494338, 9781119494331
