Question
Cooley Company has the following information: Variable production costs$8 per unit Fixed OH production costs$100,000 per year Variable selling & admin.$4 per unit Fixed selling
Cooley Company has the following information:
Variable production costs$8 per unit
Fixed OH production costs$100,000 per year
Variable selling & admin.$4 per unit
Fixed selling & admin.$60,000 per year
Year
Units Produced
Units Sold
2018
20,000
18,000
2019
25,000
22,000
The company uses theFIFO inventory method.2018 was the first year of operation.
If income under variable costing for year2019is $35,000, what was the2019net income under the absorption costing method?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
