Question
USE THE FOLLOWING INFORMATION FOR THE NEXT 2 QUESTIONS Cornell Products has the following information available for 2020: UNITS BEGINNING INVENTORY-----0 UNITS ENDING INVENTORY----5,400 UNITS
USE THE FOLLOWING INFORMATION FOR THE NEXT 2 QUESTIONS
Cornell Products has the following information available for 2020:
UNITS
BEGINNING INVENTORY-----0 UNITS
ENDING INVENTORY----5,400 UNITS
COSTS
| Direct materials | $1.00 per unit |
| Direct labor | $2.00 per unit |
| Variable manufacturing overhead | $1.50 per unit |
| Variable selling and administrative costs | $ .50 per unit |
| Fixed manufacturing overhead | $30,000/6,000 = $5.00 per unit |
| Fixed selling and administrative costs | $25,000 |
During 2020, Cornell produced 6,000 units out of which 5,400 units were sold for $20 each.
13. 6. Refer to the Cornell Products information above. What is net income under direct costing?
| a. | $35,000 |
| b. | $29,000 |
| c. | $26,000 |
| d. | $23,000 |
14. 7. Refer to the Cornell Products information above. What is net income under absorption costing?
| a. | $23,000 |
| b. | $29,000 |
| c. | $26,000 |
| d. | $35,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Environmental Impact Of Mining And Mineral Processing Management Monitoring And Auditing Strategies
Authors: Ravi Jain
1st Edition
0128040408, 978-0128040409
