The level of inventory of a manufactured product has increased by 7,635 units during a period. The following data are also available:
Variable | Fixed | |
Unit manufacturing costs of the period | $11.00 | $3.00 |
Unit operating expenses of the period | 1.00 | 4.00 |
The effect on operating income if variable costing is used rather than absorption costing would be a(n)
a.$22,905 increase
b.$53,445 increase
c.$22,905 decrease
d.$53,445 decrease
Decrease in net operating income = Increase in inventory * Unit fixed manufacturing cost = 7635 * 3 = 22905 decrease Option C is the answer |
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The level of inventory of a manufactured product has increased by 7,635 units during a period....
Calculator The level of inventory of a manufactured product has increased by 8,704 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $12.00 $3.00 Unit operating expenses of the period 1.00 4.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $60,928 increase Ob. $60,928 decrease Oc. $26,112 decrease Od. $26,112 increase
The level of inventory of a manufactured product has increased by 7,000 units during a period. The following data are also available Unit manufacturing costs of the period Unit operating expenses of the period Varia $12.00 Fixed $6.00 1.50 4.00 What would be the effect on income from operations if absorption costing is used rather than variable costing? a. $42,000 decrease b. $52,500 decrease Oc. $52,500 increase d. $42,000 increase
Calculator The level of inventory of a manufactured product has increased by 8,000 units during a period. The following data are also available: Variable Fixed Unit manufacturing costs of the period $24.00 $10.00 Unit operating expenses of the period 8.00 3.00 The effect on operating income if absorption costing is used rather than variable costing would be a(n) Oa. $80,000 decrease Ob. $80,000 increase Oc. $104,000 decrease Od $104,000 increase All work saved. Email Instru
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