Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

homilate completion.. Return to question QS 19-14 Converting variable costing income to absorption costing income LO P3 Hong Co. had net income of $386,100 under

image text in transcribed

homilate completion.. Return to question QS 19-14 Converting variable costing income to absorption costing income LO P3 Hong Co. had net income of $386,100 under variable costing. Beginning and ending inventories were 2,600 units and 3,900 units, respectively. Fixed overhead cost was $4.00 per unit for both the beginning and ending inventory. What is net income under absorption costing? Answer is complete but not entirely correct. When the number of units produced exceeds the number of units sold, net income under absorption costing will be: Higher than income using variable costing The difference in income is equal to: The number of units added to inventory multiplied by the variable overhead per unit 386,100 1,300 Net income under variable costing Change in number of units in inventory Variable selling expense per Multiplied by unit: X $ 4.00 5,200 380.900 X Net income under absorption costing e 91

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

A Non-Technical Guide To International Accounting

Authors: Roger Hussey, Audra Ong

1st Edition

1946646865, 9781946646866

More Books

Students also viewed these Accounting questions

Question

What is demography and why is it so important for marketers?

Answered: 1 week ago

Question

Describe the major focus of Frankls logotherapy.

Answered: 1 week ago

Question

5.2 Summarize the environment of recruitment.

Answered: 1 week ago