Compute for the net operating income under variable costing for year 1Puif Company's absorption costing income statements for the last two years are presentedbelow:Year 1Year 2Sales$70,000$90,000Less cost of goods sold:Beginning inventoryAdd cost of goods manufactured6,00048,00048,000Goods available for sale48,00054,000Less ending inventory| Cost of goods soldGross marginLess selling & admin. expenses6,00042,00054,00028,00036,00025,00031,000|Net operating income$ 3,000$ 5,000Data on units produced and sold in each of these years are given below:Year 1Year 2Units in beginning inventoryUnits producedUnits sold1,0008,0008,0007,0009,000Fixed factory overhead totaled $16,000 in each year. This overhead was applied toproducts at a rate of $2 per unit. Variable selling and administrative expenses were $3per unit sold.

Name: Compute for the net operating income under variable costing for year
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Description: Compute for the net operating income under variable costing for year 1Puif Company's absorption costing income statements for the last two years are presentedbelow:Year 1Year 2Sales$70,000$90,000Less cost of goods sold:Beginning inventoryAdd cost of

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Puif Company's absorption costing income statements for the last two years are presented below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory Cost of goods sold Gross margin Less selling & admin. expenses |Net operating income 6,000 42,000 54,000 28,000 36,000 25,000 31,000 $ 3,000 $ 5,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced Units sold 1,000 8,000 8,000 7,000 9,000 Fixed factory overhead totaled $16,000 in each year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.

Puif Company's absorption costing income statements for the last two years are presented below: Year 1 Year 2 Sales $70,000 $90,000 Less cost of goods sold: Beginning inventory Add cost of goods manufactured 6,000 48,000 48,000 Goods available for sale 48,000 54,000 Less ending inventory Cost of goods sold Gross margin Less selling & admin. expenses |Net operating income 6,000 42,000 54,000 28,000 36,000 25,000 31,000 $ 3,000 $ 5,000 Data on units produced and sold in each of these years are given below: Year 1 Year 2 Units in beginning inventory Units produced Units sold 1,000 8,000 8,000 7,000 9,000 Fixed factory overhead totaled $16,000 in each year. This overhead was applied to products at a rate of $2 per unit. Variable selling and administrative expenses were $3 per unit sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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