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Jones Company reported the following units of production and sales for August 2020: Production Sales August 100,000 90,000 Net income under absorption costing for the month was $40,000. Fixed manufacturing costs were $600,000. Assume that there was zero opening inventory balance as at August. How much was net income for August using variable costing? 1) $40,000 2) $20,000 3) ($20,000) 4) ($40,000) Concord Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total $75,000 120,000 45,000 60,000 $300,000 An outside supplier has offered to sell the component for $7.50. What is the effect on income if the company purchases the component from the outside supplier? 1) $30,000 increase. 2) $30,000 decrease. 3) $60,000 decrease. 4) No change. The Stevenson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Percent Complete with Units Respect to Conversion Beginning work in process 60,000 15% inventory Started into production during the 105,000 month Ending work in process inventory 40,000 20% Materials are added at the beginning of the process. What was the cost per equivalent unit for conversion for the month? 1) $2.79 2) $2.75 3) $2.50 4) $2.22 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January Units Percent Complete with Respect to Conversion work in Beginning inventory process 60,000 15% Started into production during the 105,000 month Ending work in process inventory 40,000 20% Materials are added at the beginning of the process. What were the equivalent units for materials for the month? 1) 133,000 2) 100,000 3) 165,000 O 4) 125,000