Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $84 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor $12 $5 $4 Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory O 3,000 $432,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$198,000
Neef Corporation has provided the following data for its two most recent years of operation:
Selling price per unit
$84
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 $ 5
Fixed selling and administrative expense per year
Year 1 Year 2
O $29,000
$137,000
$12
$5
O $243,000
$4
3,000
Units in beginning inventory O
Units produced during the year 12,000 9,000
Units sold during the year 9,000 10,000
Units in ending inventory 3,000 2,000
The net operating income (loss) under absorption costing in Year 1 is closest to:
$432,000
$61,000
Transcribed Image Text:$198,000 Neef Corporation has provided the following data for its two most recent years of operation: Selling price per unit $84 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 $ 5 Fixed selling and administrative expense per year Year 1 Year 2 O $29,000 $137,000 $12 $5 O $243,000 $4 3,000 Units in beginning inventory O Units produced during the year 12,000 9,000 Units sold during the year 9,000 10,000 Units in ending inventory 3,000 2,000 The net operating income (loss) under absorption costing in Year 1 is closest to: $432,000 $61,000
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