What is net income under absorption costing? Kluber, Inc. had a net income of $926,000based on variable costing. Beginning andending inventories were 56,800 units and52,150 units, respectively. Assume the fixedoverhead per unit was $1.87 for both thebeginning and ending inventory.What is net income under absorptioncosting?

Concept of Variable CostingVariable costing is a method of accounting where only variable costs,…

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X Corp produces single product. Income under variable costing and absorption costing are 36,400 and 25,600, respectively. Product cost per unit under Variable costing and absorption costing are 18 and 20 per unit, respectively. Ending inventory is 2,600 units, what is the beginning inventory in units?A. 5,400B. 2,800C. 8,000D. 13,400
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Variable Costing, Absorption Costing During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,900 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,900 scoops. Fixed overhead was applied at $0.75 per unit produced. Fixed overhead was underapplied by $2,900. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year's operations are as follows (on an absorption-costing basis): Sales (38,900 units @ $20) $778,000 Less: Cost of goods sold 547,260 Gross margin $230,740 Less: Selling and administrative expenses (all fixed) 184,500 Operating income $ 46,240 Required: 1. Calculate the cost of the firm's ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar. %24 What is the cost of the ending inventory under variable costing? Round unit…
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The following data relate to Lobo Corporation for the year just ended: Sales revenue $750,000 Cost of goods sold: Variable portion 370,000 Fixed portion 110,000 Variable selling and administrative cost 50,000 Fixed selling and administrative cost 75,000 Which of the following statements is correct? A. Lobo’s variable-costing income statement would reveal a gross margin of $270,000. B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000. C. Lobo’s absorption-costing income statement would reveal a contribution margin of $330,000. D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000. E. Lobo’s absorption-costing income statement would reveal a gross margin of $145,000.
Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.
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Kluber, Inc. had a net income of $926,000 based on variable costing. Beginning and ending inventories were 56,800 units and 52,150 units, respectively. Assume the fixed overhead per unit was $1.87 for both the beginning and ending inventory. What is net income under absorption costing?