Worrel Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year Variable costing net operating income, this year Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year $ 88,000 $ 109,000 $ 3,700 $ 12,700 Fixed manufacturing overhead costs released from inventory under absorption costing, this year Required: a. Determine the absorption costing net operating income last year. b. Determine the absorption costing net operating income this year.
Worrel Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year Variable costing net operating income, this year Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year $ 88,000 $ 109,000 $ 3,700 $ 12,700 Fixed manufacturing overhead costs released from inventory under absorption costing, this year Required: a. Determine the absorption costing net operating income last year. b. Determine the absorption costing net operating income this year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Domestic
Transcribed Image Text:Worrel Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:
Variable costing net operating income, last year
Variable costing net operating income, this year
$ 88,000
Fixed manufacturing overhead costs deferred in inventory under absorption costing,
last year
$ 109,000
$ 3,700
$ 12,700
Fixed manufacturing overhead costs released from inventory under absorption.
costing, this year.
Required:
a. Determine the absorption costing net operating income last year.
b. Determine the absorption costing net operating income this year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education