Question
Cap Incorporated manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2021 and 2022 was 8,000 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 8,000 units. There was no beginning inventory in 2021. The following data summarized the 2021 and 2022 operations:
| 2021 | 2022 | |
|---|---|---|
| Units sold | 6,500 | 9,000 |
| Units produced | 8,000 | 8,000 |
| Costs: | ||
| Variable factory overhead per unit | $ 0.20 | $ 0.20 |
| Fixed factory overhead | $ 1,200 | $ 1,200 |
| Variable marketing per unit | $ 0.30 | $ 0.30 |
| Fixed Selling and Administrative | $ 320 | $ 320 |
Variable costing operating income for 2022 is calculated to be:
The answer is 1,180...how?
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
3rd Edition
0730364577, 978-0730364573
