Curtis Incorporated, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory $ 123 0 Units produced 6,400 Units sold 6,100 Units in ending inventory 300 Variable costs per unit: Direct materials $ 45 Direct labor $ 30 Variable manufacturing overhead $ 1 $ 8 Variable selling and administrative Fixed costs: Fixed manufacturing overhead $ 1,40,800 Fixed selling and administrative $ 91,500 What is the net operating income for the month under variable costing? a. $6,600 b. $5,600 c. $(17,200) d. $12,200

Curtis Incorporated, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory $ 123 0 Units produced 6,400 Units sold 6,100 Units in ending inventory 300 Variable costs per unit: Direct materials $ 45 Direct labor $ 30 Variable manufacturing overhead $ 1 $ 8 Variable selling and administrative Fixed costs: Fixed manufacturing overhead $ 1,40,800 Fixed selling and administrative $ 91,500 What is the net operating income for the month under variable costing? a. $6,600 b. $5,600 c. $(17,200) d. $12,200

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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Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
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