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Requirements 1. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b) $490,000, (C) S890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations. 2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b) S700,000, (C) $490,000, (d) S890,000, or (e) none of these. Show supporting calculations.

Requirements 1. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b) $490,000, (C) S890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations. 2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b) S700,000, (C) $490,000, (d) S890,000, or (e) none of these. Show supporting calculations.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E9-26 (similar to) Question Help Atlanta, Inc., planned and actually manufactured 170,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $15 per unit sold. Planned and actual fixed manufacturing costs were $510,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Atlanta sold 100,000 units of product at $46 per unit. Read the requirements. Requirement 1. Atlanta's 2017 operating income using absorption costing is (a) $700,000, (b) $490,000, (c) $890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to e "0" in the appropriate cell.) Absorption costing Revenues 4600000 Cost of goods sold: Requirements Beginning inventory Variable manufacturing costs 2890000 Allocated fixed manufacturing costs 510000 1. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b) $490,000, (c) $890,000, (d) S1,100,000, or (e) none of these. Show supporting calculations. 2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b) $700,000, (c) $490,000, (d) $890,000, or (e) none of these. Show supporting Cost of goods available for sale 3400000 Deduct ending inventory Cost of goods sold calculations. Gross margin Variable operating costs 1400000 Print Done Fixed operating costs 400000 Operating income Choose from any list or enter any number in the input fields and then click Check Answer.
Transcribed Image Text:E9-26 (similar to) Question Help Atlanta, Inc., planned and actually manufactured 170,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $17 per unit produced. Variable operating (nonmanufacturing) cost was $15 per unit sold. Planned and actual fixed manufacturing costs were $510,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Atlanta sold 100,000 units of product at $46 per unit. Read the requirements. Requirement 1. Atlanta's 2017 operating income using absorption costing is (a) $700,000, (b) $490,000, (c) $890,000, (d) $1,100,000, or (e) none of these. Show supporting calculations. Begin by selecting the labels used in the absorption costing calculation of operating income and enter the supporting amounts. Perform the calculations in this step, but select the correct operating income in the next step. (For amounts with a $0 balance, make sure to e "0" in the appropriate cell.) Absorption costing Revenues 4600000 Cost of goods sold: Requirements Beginning inventory Variable manufacturing costs 2890000 Allocated fixed manufacturing costs 510000 1. Atlanta's 2017 operating income using absorption costing is (a) S700,000, (b) $490,000, (c) $890,000, (d) S1,100,000, or (e) none of these. Show supporting calculations. 2. Atlanta's 2017 operating income using variable costing is (a) $1,000,000, (b) $700,000, (c) $490,000, (d) $890,000, or (e) none of these. Show supporting Cost of goods available for sale 3400000 Deduct ending inventory Cost of goods sold calculations. Gross margin Variable operating costs 1400000 Print Done Fixed operating costs 400000 Operating income Choose from any list or enter any number in the input fields and then click Check Answer.
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