help me to solve this questions. The level of inventory of a manufactured product has increased by7,000 units during a period. The following data are also available:Variable FixedUnit manufacturing costs of the period $12.00 $6.00Unit operating expenses of the period 4.001.50What would be the effect on income from operations if absorptioncosting is used rather than variable coding?a. $42,000 decreaseb. $42,000 increasec. $62,500 increased. $52,500 decrease

Step 1: Definition of Absorption CostingAbsorption costing is an accounting method where all…

Answered: The level of inventory of a…

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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The level of inventory of a manufactured product has increased by 9,022 units during a period. The following data are also available: Line Item Description Variable Fixed Unit manufacturing costs of the period $14.00 $5.00 Unit operating expenses of the period 4.00 3.00 The effect on operating income if absorption costing is used rather than variable costing would be a a. $72,176 increase b. $45,110 decrease c. $45,110 increase d. $72,176 decrease
The level of inventory of a manufactured product has increased by 7,871 units during a period. The following data are also available: Variable Fixed $12.00 $7.00 1.00 4.00 Unit manufacturing costs of the period Unit operating expenses of the period The effect on operating income if variable costing is used rather than absorption costing would be a(n) a. $55,097 increase Ob. $55,097 decrease Oc. $86,581 increase Od. $86,581 decrease
The level of inventory of a manufactured product has increased by 6,980 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $10.00 $3.00 Unit operating expenses of the period 1.00 5.00 The effect on operating income if absorption costing is used rather than variable costing would be a a.$55,840 decrease b.$55,840 increase c.$20,940 decrease d.$20,940 increase
The level of inventory of a manufactured product has increased by 7,534 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12 $7 Unit operating expenses of the period $2 $1 What would be the effect on income from operations if variable costing is used rather than absorption costing? a.$60,272 decrease b.$52,738 decrease c.$52,738 increase d.$60,272 increase
The level of inventory of a manufactured product has increased by 7,819 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $13.00 $8.00 Unit operating expenses of the period 1.00 3.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$86,009 increase b.$86,009 decrease c.$62,552 decrease d.$62,552 increase
The level of inventory of a manufactured product has increased by 7,741 units during a period. The following data are also available: Fixed Unit manufacturing costs of the period $7.00 Unit operating expenses of the period 4.00 1.00 The effect on operating income if variable costing is used rather than absorption costing would be a[n) O $61.920 decrease Ob. 161.928 increase O$54.187 increase d. 554.107 decrease Variable $10.00
The level of inventory of a manufactured product has increased by 7,827 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $13 $3 Unit operating expenses of the period $4 $1 What would be the effect on income from operations if absorption costing is used rather than variable costing? a.$23,481 increase b.$31,308 increase c.$23,481 decrease d.$31,308 decrease
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 O b. $50,000 decrease Oc. $50,000 increase O d. $65.000 increase
The level of inventory of a manufactured product has increased by 7,949 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $5.00 Unit operating expenses of the period 4.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a.$71,541 decrease b.$39,745 increase c.$39,745 decrease d.$71,541 increase
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The level of inventory of...accounting questions
The level of inventory of a manufactured product has increased by 8,366 units during a period. The following data are also available: Line Item Description Variable Fixed Unit manufacturing costs of the period $14.00 $8.00 Unit operating expenses of the period 2.00 4.00 The effect on operating income if variable costing is used rather than absorption costing would be a(n) a. $100,392 increase b. $66,928 decrease c. $66,928 increase d. $100,392 decrease

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