Elliot Company, which has only one product, has provided the following data concerning its most recent month
Question:
Elliot Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price ............................$112
Units in beginning inventory .............0
Units produced ...........................4,900
Units sold ...............................4,500
Units in ending inventory ................400
Variable costs per unit:
Direct materials .......................$19
Direct labor ...........................45
Variable manufacturing overhead ........6
Variable selling and administrative ....9
Fixed costs:
Fixed manufacturing overhead ...........$117,600
Fixed selling and administrative .......22,500
6.
What is the net income for the month under variable costing?
A) $18,000
B) ($19,600)
C) $9,600
D)$8,400
7.
What is the net income for the month under absorption costing?
A) ($19,600)
B) $9,600
C) $8,400
D)$18,000
How do you get to both of these answer?