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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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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?