Selling price per unit: $15 Variable cost per unit: $10 Fixed MOH for each year: $800 Year 1 Year 2 Production 250 200 Sold 210 240 Ending Inventory 40 0 Using absorption costing, Net Operating Income for Year 2 is: Select one: a. $378 b. $250 c. $400 d. $272 e. $650

Selling price per unit: $15 Variable cost per unit: $10 Fixed MOH for each year: $800 Year 1 Year 2 Production 250 200 Sold 210 240 Ending Inventory 40 0 Using absorption costing, Net Operating Income for Year 2 is: Select one: a. $378 b. $250 c. $400 d. $272 e. $650

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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Question

Selling price per unit: $15

Variable cost per unit: $10

Fixed MOH for each year: $800

	Year 1	Year 2
Production	250	200
Sold	210	240
Ending Inventory	40	0

Using absorption costing, Net Operating Income for Year 2 is:

Select one:

a. $378

b. $250

c. $400

d. $272

e. $650

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