Columbia Corporation produces a single product. The company's variable costing Income statement for November appears below:Columbia CorporationIncome StatementFor the Month ended November 30Sales ($20 per unit)Variable expenses:Variable cost of goods soldVariable selling expenseTotal variable expensesContribution marginFixed expenses:ManufacturingSelling and administrativeTotal fixed expensesNet operating income$854,000555,100128,100683,200170,800105,57035,190140,760$ 30,040During November, 35,190 units were manufactured and 8,750 units were in beginning Inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months.Under absorption costing, for November the company would report a:Multiple Choice$7,510 profit$30,040 profit$35,190 profit$7,510 loss

Product cost refers to the cost incurred in the factory for the production of goods and hence…

Columbia Corporation Income Statement For the Month ended November 30 Sales ($20 per unit) Variable expenses: Variable cost of goods sold Variable selling expense Total variable expenses Contribution margin $854,000 555,100 128,100 683,200 170,800 Fixed expenses: Manufacturing Selling and administrative Total fixed expenses Net operating income 105,570 35,190 140,760 $ 30,040 During November, 35,190 units were manufactured and 8,750 units were in beginning Inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior mont Under absorption costing, for November the company would report a: Multiple Choice $7,510 profit $30,040 profit $35,190 profit $7,510 loss

Columbia Corporation Income Statement For the Month ended November 30 Sales ($20 per unit) Variable expenses: Variable cost of goods sold Variable selling expense Total variable expenses Contribution margin $854,000 555,100 128,100 683,200 170,800 Fixed expenses: Manufacturing Selling and administrative Total fixed expenses Net operating income 105,570 35,190 140,760 $ 30,040 During November, 35,190 units were manufactured and 8,750 units were in beginning Inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior mont Under absorption costing, for November the company would report a: Multiple Choice $7,510 profit $30,040 profit $35,190 profit $7,510 loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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