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Category > Accounting Posted 01 Jun 2017 My Price 7.00

Khanam Corporation

Please help, I'm having a hard time with this problem.

Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

 

 Selling price $133   

Units in beginning inventory 0   

Units produced 8,850 

Units sold 8,950

Units in ending inventory 850 

Variable costs per unit:    

Direct materials $29    

Direct labor $46     

Variable manufacturing overhead $10    

Variable selling and administrative $20   

Fixed costs:     

Fixed manufacturing overhead $70,800     

Fixed selling and administrative $164,200  

 

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

 

What is the net operating income for the month under absorption costing?

 

$14,800

$4,100

$4,100

$24,100

Answers

(15)
Status NEW Posted 01 Jun 2017 05:06 AM My Price 7.00

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file 1496296234-Solutions file.docx preview (51 words )
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