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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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