Morwenna, Inc. reports the following information for August: Sales Revenue $700,000 Variable Cost of Goods Sold 170,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 160,000 Fixed Selling and Administrative Costs 75,000 Calculate the operating income for August using absorption costing.
Morwenna, Inc. reports the following information for August: Sales Revenue $700,000 Variable Cost of Goods Sold 170,000 Fixed Cost of Goods Sold 45,000 Variable Selling and Administrative Costs 160,000 Fixed Selling and Administrative Costs 75,000 Calculate the operating income for August using absorption costing.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...
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Question
Morwenna, Inc. reports the following information for August:
Sales Revenue
|
$700,000
|
Variable Cost of Goods Sold
|
170,000
|
Fixed Cost of Goods Sold
|
45,000
|
Variable Selling and Administrative Costs
|
160,000
|
Fixed Selling and Administrative Costs
|
75,000
|
Calculate the operating income for August using absorption costing.
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