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10th Edition
ISBN: 9781337605656
Author: CROSS
Publisher: CENGAGE L
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Chapter 12, Problem 2BS
Summary Introduction

Case summary:The person T is a buyer and the person M is a manufacturer of file cabinets. M enters into a contract with T for a delivery of some cabinets at $40 per unit. After two out of five promised installments, M raised the price to $50. T agreed to pay $50 per cabinet in writing.

To find: The legality of the person M to collect the additional cost on the next delivery.

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I need the correct answer to this general accounting problem using the standard accounting approach.
Fenton Manufacturing Inc. had a variable costing operating income of $128,400 in 2023. Ending inventory decreased during 2023 from 45,000 units to 40,000 units. During both 2022 and 2023, fixed manufacturing overhead was $1,080,000, and 135,000 units were produced. Determine the absorption costing operating income for 2023.
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