WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 Required: a.Determine the absorption costing net operating income last year. b.Determine the absorption costing net operating income this year.
WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 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
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WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years:
Variable costing net operating income, last year............P71,000
Variable costing net operating income, this year............P92,000
Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000
Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000
Required:
a.Determine the absorption costing net operating income last year.
b.Determine the absorption costing net operating income this year.
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