The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs: Cost Information Costs Variable Fixed Manufacturing costs per unit 12.50 5.60 Selling and administrative costs per unit 5.00 2.00 Which of the following statements is true? Group of answer choices Net income will be the same under both variable and absorption costing. Net income under absorption costing will be $76,000 more than under variable costing. The difference in net income cannot be determined. Net income under variable costing will be $56,000 less than net income under absorption costing.
The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs: Cost Information Costs Variable Fixed Manufacturing costs per unit 12.50 5.60 Selling and administrative costs per unit 5.00 2.00 Which of the following statements is true? Group of answer choices Net income will be the same under both variable and absorption costing. Net income under absorption costing will be $76,000 more than under variable costing. The difference in net income cannot be determined. Net income under variable costing will be $56,000 less than net income under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-
| Costs | Variable | Fixed |
|---|---|---|
| Manufacturing costs per unit | 12.50 | 5.60 |
| Selling and administrative costs per unit | 5.00 | 2.00 |
Which of the following statements is true?
Group of answer choices
Net income will be the same under both variable and absorption costing.
Net income under absorption costing will be $76,000 more than under variable costing.
The difference in net income cannot be determined.
Net income under variable costing will be $56,000 less than net income under absorption costing.
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