The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $24.00 $10.00 8.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a a. $65,000 decrease Ob. $50,000 decrease Oc. $50,000 increase O d. $65.000 increase

The level of inventory of a manufactured product has increased by 5,000 units during a period. The following data are also available: Unit manufacturing costs of the period Unit operating expenses of the period Variable Fixed $24.00 $10.00 8.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a a. $65,000 decrease Ob. $50,000 decrease Oc. $50,000 increase O d. $65.000 increase

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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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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Prepare an absorption-costing income statement for last year. Round to nearest whole number.
The carrying value of ending inventory under variable costing would be:A. P1,400 higher than under absorption costing B. P1,400 less than under absorption costing C. P800 less than under absorption costingD. the same as under absorption costing
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Drop down options: Fixed manufacturing overhead Fixed selling and administrative expense Sales Units in beginning inventory Units in ending inventory Units produced Units sold Variable cost of goods sold Variable selling and administrative expense
Please help me with show all Calculation thanku