The following information is available for X Co. for its first year of operations:Sales in units5,000Production in units8,000Manufacturing costs:Direct laborDirect material$3 per unit5 per unit1 per unitVariable overheadFixed overhead$100,000Net income (absorption method)$30,000$40Sales price per unit19. What would X Co. have reported as its income before income taxes if it had usedvariable costing?A. ($30,000)C. $30,000D. $67,500B. ($7,500)20. What was the total amount of SG&A expense incurred by X Co.?A. $6,000C. $36,000B. $30,000D. $62,500

Using absorption costing, the fixed costs are deferred in ending inventory and released from…

The following information is available for X Co. for its first year of operations: Sales in units Production in units 5,000 8,000 Manufacturing costs: Direct labor Direct material $3 per unit 5 per unit 1 per unit $100,000 Variable overhead Fixed overhead Net income (absorption method) $30,000 $40 Sales price per unit 19. What would X Co. have reported as its income before income taxes if it had use variable costing? A. ($30,000) C. $30,000 D. $67,500 B. ($7,500) 20. What was the total amount of SG&A expense incurred by X Co.? A. $6,000 C. $36,000 B. $30,000 D. $62,500

The following information is available for X Co. for its first year of operations: Sales in units Production in units 5,000 8,000 Manufacturing costs: Direct labor Direct material $3 per unit 5 per unit 1 per unit $100,000 Variable overhead Fixed overhead Net income (absorption method) $30,000 $40 Sales price per unit 19. What would X Co. have reported as its income before income taxes if it had use variable costing? A. ($30,000) C. $30,000 D. $67,500 B. ($7,500) 20. What was the total amount of SG&A expense incurred by X Co.? A. $6,000 C. $36,000 B. $30,000 D. $62,500

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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