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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense 154 2,560 2,230 330 51 24 $. 15 16 $92,160 $11,150 The tegross margin for the month under absorption costing is: Multiple Chotce $62.440 S15.610, K Prev 4: of 10 Next > ere to search
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Aaron 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 Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead $ 147 0 6,900 6,600 300 Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense What is the unit product cost for the month under variable costing? $ 24 $ 54 $ 18 $ 18 $ 186,300 $ 27,600 Multiple Choice $114 per unit $141 per unit $123 per unit
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