Jervix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $111 Units in beginning inventory Units produced. Units sold.. Units in ending inventory. 400 ........ ..... 8,800 8,900 300 ..... .... Variable costs per unit: Direct materials Direct labor... Variable manufacturing overhead... Variable selling and administrative ... $34 $37 $3 $9 ... Fixed costs: Fixed manufacturing overhead Fixed selling and administrative... $61,600 $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. A. What is the net operating income for the month under variable costing? B. What is the net operating income for the month under absorption costing?
Jervix Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price. $111 Units in beginning inventory Units produced. Units sold.. Units in ending inventory. 400 ........ ..... 8,800 8,900 300 ..... .... Variable costs per unit: Direct materials Direct labor... Variable manufacturing overhead... Variable selling and administrative ... $34 $37 $3 $9 ... Fixed costs: Fixed manufacturing overhead Fixed selling and administrative... $61,600 $169,100 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. A. What is the net operating income for the month under variable costing? B. What is the net operating income for the month under absorption costing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Jarvix Corporation, which has only one product, has provided the following data concerning its
most recent month of operations:
Selling price...
$111
Units in beginning inventory
Units produced...
Units sold. ..
Units in ending inventory
400
8,800
8,900
300
Variable costs per unit:
Direct materials
Direct labor....
Variable manufacturing overhead....
Variable selling and administrative...
$34
$37
$3
$9
...*.
*****
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative....
$61,600
$169,100
The company produces the same number of units every month, although the sales in units
vary from month to month. The company's variable costs per unit and total fixed costs have
been constant from month to month.
A. What is the net operating income for the month under variable costing?
B. What is the net operating income for the month under absorption costing?
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