Question
Do not show any calculations. Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2019, its first year of operations. Variable
Do not show any calculations.
Alvin Inc. planned and actually manufactured 200,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $30 per unit of product produced. Planned and actual fixed manufacturing costs were $600,000, and fixed marketing and administrative costs totaled $400,000 in 2019. Alvin sold 120,000 units of product in 2019 at a selling price of $40 per unit.
1-What is Alvins 2019 operating income using variable costing?
The format of your answer must be as follows:
Alvins 2019 operating income using variable costing is $10.00 (this is not the correct answer)
Using the data from question 1, answer the following question:
2-What is Alvins 2019 operating income using absorption costing?
The format of your answer must be as follows:
Alvins 2019 operating income using absorption costing is $10.00 (this is not the correct answer)
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