Question
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 112 Units in
Farris Corporation, 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 | 8,950 | ||
| Units sold | 8,550 | ||
| Units in ending inventory | 400 | ||
| Variable costs per unit: | ||
| Direct materials | $ | 18 |
| Direct labor | $ | 60 |
| Variable manufacturing overhead | $ | 6 |
| Variable selling and administrative expense | $ | 10 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 134,250 |
| Fixed selling and administrative expense | $ | 8,800 |
What is the net operating income for the month under absorption costing?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing
5th Canadian Edition
0135004934, 978-0135004937
