S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventor of the manufactured product remained unchanged. The manufacturing costs were as follo" Variable Fixed $11.00 $7.00 3.00 2.50 Unit manufacturing costs of the period Unit operating expenses of the period Which of the following statements is true? a. Net income will be the same under both variable and absorption costing. b. The difference in net income cannot be determined. d. Net income under variable costing will be $45,000 less than net income under absorption costing.

S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventor of the manufactured product remained unchanged. The manufacturing costs were as follo" Variable Fixed $11.00 $7.00 3.00 2.50 Unit manufacturing costs of the period Unit operating expenses of the period Which of the following statements is true? a. Net income will be the same under both variable and absorption costing. b. The difference in net income cannot be determined. d. Net income under variable costing will be $45,000 less than net income under absorption costing.

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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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory
of the manufactured product remained unchanged. The manufacturing costs were as follows:
Variable Fixed
$11.00 $7.00
3.00
2.50
Unit manufacturing costs of the period
Unit operating expenses of the period
Which of the following statements is true?
a. Net income will be the same under both variable and absorption costing.
b. The difference in net income cannot be determined.
d. Net income under variable costing will be $45,000 less than net income under absorption costing.

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