Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello tutor my name is Nathan and my professor assigned an optional review paper before our exam on Tuesday. Unfortunately he doesn't tell me any

Hello tutor my name is Nathan and my professor assigned an optional review paper before our exam on Tuesday. Unfortunately he doesn't tell me any of the answers, so I have no way to be sure if I have anything right. I don't want to learn the wrong thing, so could you answer these questions so I could have a study guide. Thank you tutor:)

image text in transcribed
Absorb and Variable inc. produced 20,000 units and sold 30,000 units. Assume there is $400,000 in beginning inventory under variable costing and $600,000 in beginning inventory under absorption costing. The following financial information is available for 2019. Selling price per unit $55 Variable manufacturing overhead cost per unit $20 Variable operating expense per unit $12 Fixed manufacturing overhead costs $150,000 Fixed operating expenses $116,000 a) Determine the operating income under the variable costing method. b) Determine the operating income under the absorption costing method. c) Which option would show the higher operating income if the production volume was 40,000 units instead of 20,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Kemp, Jeffrey Waybright

5th edition

134727797, 9780134728643 , 978-0134727790

More Books

Students also viewed these Accounting questions

Question

In what two ways is accrual accounting accomplished?

Answered: 1 week ago

Question

Why would a person fear success?

Answered: 1 week ago