Question
The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 4,800
The following information is available for Barnes Company for the fiscal year ended December 31:
| Beginning finished goods inventory in units | 0 | ||
| Units produced | 4,800 | ||
| Units sold | 4,000 | ||
| Sales | $ | 400,000 | |
| Materials cost | $ | 96,000 | |
| Variable conversion cost used | $ | 48,000 | |
| Fixed manufacturing cost | $ | 72,000 | |
| Indirect operating costs (fixed) | $ | 80,000 | |
The absorption costing operating income is:
Multiple Choice
-
$120,000
-
$140,000
-
$128,000
-
$112,000
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
11th Edition
0131867121, 978-0131867123
