Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen Company's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's operating income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, what must have been the number of units of product in the beginning inventory last year? a. 18,800 units b. 19,200 units c. 19,520 units d. 21,200 units

Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen Company's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginning inventory. The company's operating income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, what must have been the number of units of product in the beginning inventory last year? a. 18,800 units b. 19,200 units c. 19,520 units d. 21,200 units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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pls show solutions Last year, Stephen Company had 20,000 units in its ending inventory. During the year, Stephen's variable production costs were $12 per unit. The fixed manufacturing overhead cost was $8 per unit in the beginninginventory. The company's net income for the year was $9,600 higher under variable costing than it was under absorption costing. Given these facts, the number of units of product in the beginning inventory last year musthave been how much?
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