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Category > Management Posted 08 Oct 2017 My Price 9.00

DeAnne Company

DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

 

DeAnne Company
Income Staement
For the month ended August 31
Sales ($20 per unit) $ 850,000
 
Variable expenses:  
Variable cost of goods sold 510,000
Variable selling expense 85,000
 
Total variable expenses 595,000
 
Contribution margin 255,000
 
Fixed expenses:  
Fixed manufacturing 140,120
Fixed selling and administrative 70,060
 
Total fixed expenses 210,180
 
Net operating income $ 44,820
 

 

The company produced 35,030 units in August and the beginning inventory consisted of 8,770 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

 

Under absorption costing, the ending inventory for the month ended August 31 would be reported at:
  $15,600
  $23,400
  $20,800
  $28,400

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Maurice Tutor
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Status NEW Posted 08 Oct 2017 09:10 PM My Price 9.00

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