Sterling Tech Co., which produces only one product, has provided the following data concerning its most recent month of operations: Details Selling Price per Unit Units Produced Units Sold Units in Ending Inventory Amount ($) $150 Units in Beginning Inventory 0 12,000 11,500 500 Variable Costs per Unit: Direct Materials $40 Direct Labor $65 Variable Manufacturing Overhead $18 Variable Selling and Admin $20 Fixed Costs: Fixed Manufacturing Overhead $180,000 $12,500 Fixed Selling and Admin Calculate the net operating income for the month under variable costing.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter18: Pricing And Profitability Analysis
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Financial Accounting Question

Sterling Tech Co., which produces only one product, has provided the following
data concerning its most recent month of operations:
Details
Selling Price per Unit
Units Produced
Units Sold
Units in Ending Inventory
Amount ($)
$150
Units in Beginning Inventory
0
12,000
11,500
500
Variable Costs per Unit:
Direct Materials
$40
Direct Labor
$65
Variable Manufacturing Overhead
$18
Variable Selling and Admin
$20
Fixed Costs:
Fixed Manufacturing Overhead
$180,000
$12,500
Fixed Selling and Admin
Calculate the net operating income for the month under variable costing.
Transcribed Image Text:Sterling Tech Co., which produces only one product, has provided the following data concerning its most recent month of operations: Details Selling Price per Unit Units Produced Units Sold Units in Ending Inventory Amount ($) $150 Units in Beginning Inventory 0 12,000 11,500 500 Variable Costs per Unit: Direct Materials $40 Direct Labor $65 Variable Manufacturing Overhead $18 Variable Selling and Admin $20 Fixed Costs: Fixed Manufacturing Overhead $180,000 $12,500 Fixed Selling and Admin Calculate the net operating income for the month under variable costing.
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