Question
Shopgirl Company's actual costing records for the year ended December 31 are shown below. There was no finished goods inventory at January 1, and there
Shopgirl Company's actual costing records for the year ended December 31 are shown below. There was no finished goods inventory at January 1, and there were no work-in-process inventories at the beginning and end of the year.
Net Sales: $1,280,000
Cost of Goods Manufactured: Variable = $630,000 ----- Fixed = $315,000
Operating Expenses: Variable = $98,000 ----- Fixed $140,000
Units Manufactured = 70,000
Units Sold = 60,000
what are the operating income for this year under the direct costing method and the absorption costing method?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 2
1119048540, 978-1119048541
