Question
Flint Enterprises had the following cost and production information for April: Units Produced 20,000 Unit Sales Price $ 200 Manufacturing Cost Per Unit Direct Material
Flint Enterprises had the following cost and production information for April:
| Units Produced | 20,000 | |||
| Unit Sales Price | $ | 200 | ||
| Manufacturing Cost Per Unit | ||||
| Direct Material | $ | 40 | ||
| Direct Labor | $ | 25 | ||
| Variable Manufacturing Overhead | $ | 14 | ||
| Fixed Manufacturing Overhead | ($440,000/20,000) | = | $ | 22 |
| Full Manufacturing Cost Per Unit | $ | 101 | ||
| Nonmanufacturing Costs | ||||
| Variable Selling Expenses | $ | 86,000 | ||
| Fixed General and Administrative Costs | $ | 117,000 | ||
Inventory increased by 5,000 units during April. What is Flint Enterprise's income under absorption costing?
Multiple Choice
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$1,282,000
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$1,550,000
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$1,593,000
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P7 Advanced Audit And Assurance Q And A 2013
Authors: ACCA Simplified
1st Edition
1492716626, 978-1492716624
