Plummer 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 $92,000 $31,000 $26,000 $132,000 0 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory 2,000 The net operating income (loss) under absorption costing in Year 2 is closest to: 9,000 7,000 $ 5555 44 $ 63,000 5 $ 66,000 Year 2 2,000 7,000 8,000 1,000
Plummer 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 $92,000 $31,000 $26,000 $132,000 0 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory 2,000 The net operating income (loss) under absorption costing in Year 2 is closest to: 9,000 7,000 $ 5555 44 $ 63,000 5 $ 66,000 Year 2 2,000 7,000 8,000 1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Plummer 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
Units in beginning inventory
Units produced during the year
Year 1
$31,000
$26,000
$132,000
0
9,000
Units sold during the year
7,000
Units in ending inventory
2,000
The net operating income (loss) under absorption costing in Year 2 is closest to:
$92,000
$
44
$ 63,000
5
$ 66,000
Your 2
2,000
7,000
8,000
1,000
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