Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Year 1 0 Year 2 3,000 10,000 10,000 3,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory The net operating income (loss) under absorption costing in Year 2 is closest to: 12,000 9,000 3,000 $ 91 $13 $7 $3 $ 480,000 $6 $ 84,000
Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year Year 1 0 Year 2 3,000 10,000 10,000 3,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory The net operating income (loss) under absorption costing in Year 2 is closest to: 12,000 9,000 3,000 $ 91 $13 $7 $3 $ 480,000 $6 $ 84,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Moskowitz Corporation has provided the following data for its two most recent years of operation:
Selling price per unit
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead per year
Selling and administrative expenses:
Variable selling and administrative expense per unit sold
Fixed selling and administrative expense per year
Year 1
0
Year 2
3,000
10,000
10,000
3,000
Units in beginning inventory
Units produced during the year
Units sold during the year
Units in ending inventory
The net operating income (loss) under absorption costing in Year 2 is closest to:
12,000
9,000
3,000
$91
$13
$7
$3
$ 480,000
$6
$ 84,000
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