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DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income statement For the month ended August
DeAnne Company produces a single product. The company's variable costing income statement for August appears below:
DeAnne Company Income statement For the month ended August 31 | |
Sales ($25 per unit) | $1,400,000 |
Variable expenses: | |
Variable cost of goods sold | 504,000 |
Variable selling expense | 112,000 |
Total variable expenses | 616,000 |
Contribution margin | 784,000 |
Fixed expenses: | |
Fixed manufacturing | 153,000 |
Fixed selling and administrative | 51,000 |
Total fixed expenses | 204,000 |
Net operating income | $580,000 |
The company produced 51,000 units in August and the beginning inventory consisted of 24,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. The value of the company's inventory on August 31 under the absorption costing method is (Do not round your intermediate calculations.):
$228,000 | |
$266,000 | |
$171,000 | |
$283,304 |
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