Baraban Corporation has provided the following data for its most recent year of operation: Selling price per unit $ 47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 63,000 Units in beginning inventory 0 Units produced during the year 10,000 Units sold during the year 9,000 Units in ending inventory 1,000 The net operating income (loss) under absorption costing closest to: $9,000 ($4,000) $117,000 $72,000
Baraban Corporation has provided the following data for its most recent year of operation: Selling price per unit $ 47 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 130,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 63,000 Units in beginning inventory 0 Units produced during the year 10,000 Units sold during the year 9,000 Units in ending inventory 1,000 The net operating income (loss) under absorption costing closest to: $9,000 ($4,000) $117,000 $72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Baraban Corporation has provided the following data for its most recent year of operation:
The net operating income (loss) under absorption costing closest to:
| Selling price per unit | $ | 47 |
| Variable manufacturing cost per unit produced: | ||
| Direct materials | $ | 10 |
| Direct labor | $ | 6 |
| Variable manufacturing |
$ | 5 |
| Fixed manufacturing overhead per year | $ | 130,000 |
| Selling and administrative expenses: | ||
| Variable selling and administrative expense per unit sold | $ | 5 |
| Fixed selling and administrative expense per year | $ | 63,000 |
| Units in beginning inventory | 0 |
| Units produced during the year | 10,000 |
| Units sold during the year | 9,000 |
| Units in ending inventory | 1,000 |
The net operating income (loss) under absorption costing closest to:
|
$9,000
|
||
|
($4,000)
|
||
|
$117,000
|
||
|
$72,000
|
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