Jack Company sells its product for $11,000 per unit. Variable costs per unit are: manufacturing, $6,000, and selling and administrative, $125. Fixed costs are: $30,000 manufacturing overhead, and $40,000 selling and administrative. There was no beginning inventory at 1/1/09. Production was 20 units per year in 2009-2011. Sales were 20 units in 2009, 16 units in 2010, and 24 units in 2011. Income under absorption costing for 2010 is: A) $8,000. B) $14,000. C) $16,000. D) $22,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Need answer of this question

Jack Company sells its product for $11,000 per unit. Variable costs per unit are: manufacturing,
$6,000, and selling and administrative, $125. Fixed costs are: $30,000 manufacturing
overhead, and $40,000 selling and administrative. There was no beginning inventory at 1/1/09.
Production was 20 units per year in 2009-2011. Sales were 20 units in 2009, 16 units in 2010,
and 24 units in 2011. Income under absorption costing for 2010 is:
A) $8,000.
B) $14,000.
C) $16,000.
D) $22,000.
Transcribed Image Text:Jack Company sells its product for $11,000 per unit. Variable costs per unit are: manufacturing, $6,000, and selling and administrative, $125. Fixed costs are: $30,000 manufacturing overhead, and $40,000 selling and administrative. There was no beginning inventory at 1/1/09. Production was 20 units per year in 2009-2011. Sales were 20 units in 2009, 16 units in 2010, and 24 units in 2011. Income under absorption costing for 2010 is: A) $8,000. B) $14,000. C) $16,000. D) $22,000.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
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