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Riverhawk Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 71 Manufacturing costs: Variable manufacturing
Riverhawk Corporation has provided the following data for its two most recent years of operation:
Selling price per unit | $ 71 |
---|---|
Manufacturing costs: | |
Variable manufacturing cost per unit produced: | |
Direct materials | $ 12 |
Direct labor | $ 6 |
Variable manufacturing overhead | $ 3 |
Fixed manufacturing overhead per year | $264,000 |
Selling and administrative expenses: | |
Variable selling and administrative expense per unit sold | $ 4 |
Fixed selling and administrative expense per year | $ 74,000 |
Year 1 | Year 2 | |
---|---|---|
Units in beginning inventory | 0 | 3,000 |
Units produced during the year | 11,000 | 12,000 |
Units sold during the year | 8,000 | 14,000 |
Units in ending inventory | 3,000 | 1,000 |
The net operating income (loss) under absorption costing in Year 1 is closest to:
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