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A company that produces a single product had a net operating income of $87,000 using variable costing and a net operating income of $119,240 using absorption costing. Total fixed manufacturing overhead was $57,120 and production was 11,200 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:(General Account) (Do not round intermediate computation and round your final answer to nearest whole number.) a) decreased by 6,322 units b) increased by 6,322 units c) increased by 32,240 units d) decreased by 32,240 units

A company that produces a single product had a net operating income of $87,000 using variable costing and a net operating income of $119,240 using absorption costing. Total fixed manufacturing overhead was $57,120 and production was 11,200 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:(General Account) (Do not round intermediate computation and round your final answer to nearest whole number.) a) decreased by 6,322 units b) increased by 6,322 units c) increased by 32,240 units d) decreased by 32,240 units

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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A company that produces a single product had a net operating income of $87,000 using variable costing and a net operating income of $119,240 using absorption costing. Total fixed manufacturing overhead was $57,120 and production was 11,200 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:(General Account) (Do not round intermediate computation and round your final answer to nearest whole number.) a) decreased by 6,322 units b) increased by 6,322 units c) increased by 32,240 units d) decreased by 32,240 units
Transcribed Image Text:A company that produces a single product had a net operating income of $87,000 using variable costing and a net operating income of $119,240 using absorption costing. Total fixed manufacturing overhead was $57,120 and production was 11,200 units both this year and last year. Last year was the first year of operations. Between the beginning and the end of the year, the inventory level:(General Account) (Do not round intermediate computation and round your final answer to nearest whole number.) a) decreased by 6,322 units b) increased by 6,322 units c) increased by 32,240 units d) decreased by 32,240 units
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