For 2014, Arco Company's operating income computed by the Absorption Costing method was $6,400 and its operating income computed by the Variable Costing method was $9,100. The product's cost was $17 under variable costing and $20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning inventory in units must have been: a) 3,000 units b) 900 units c) 1,200 units d) Cannot be determined

For 2014, Arco Company's operating income computed by the Absorption Costing method was $6,400 and its operating income computed by the Variable Costing method was $9,100. The product's cost was $17 under variable costing and $20 under absorption costing. If the ending inventory consisted of 2,100 units, the beginning inventory in units must have been: a) 3,000 units b) 900 units c) 1,200 units d) Cannot be determined

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 4E: The following production data came from the records of Olympic Enterprises for the year ended...

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