Farris Corp operations: Selling price its in beginning inventory Units produced Units sold $96 O 8,750 8,350 ts in ending inventory 400 Variable costs per unit: Direct materials Direct labor turing overhead $14 $56 $2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
23
Farris Corporation, which has only one product, has provided the following data concerning its most recent month of
operations:
Selling price
Units in beginning inventory
Units produced
Units sold
$96
O
8,750
8,350
Units in ending inventory 400
Variable costs per unit:
Direct materials
$14
Direct labor
$56
Variable manufacturing overhead
$2
ble selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead
$131,250
selling and administrative expense $8,400
The net operating income for the month under absorption costing?
Transcribed Image Text:Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold $96 O 8,750 8,350 Units in ending inventory 400 Variable costs per unit: Direct materials $14 Direct labor $56 Variable manufacturing overhead $2 ble selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $131,250 selling and administrative expense $8,400 The net operating income for the month under absorption costing?
Units in beginning inventory
Units produced
Units sold
8,750
8,350
Units in ending inventory 400
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
$14
$56
$2
Variable selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead
$131,250
Fixed selling and administrative expense $ 8,400
What is the net operating income for the month under absorption costing?
$10,650
$16,650
O $6,000
O $18.150
Transcribed Image Text:Units in beginning inventory Units produced Units sold 8,750 8,350 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $14 $56 $2 Variable selling and administrative expense $ 6 Fixed costs: Fixed manufacturing overhead $131,250 Fixed selling and administrative expense $ 8,400 What is the net operating income for the month under absorption costing? $10,650 $16,650 O $6,000 O $18.150
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education