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    kingdon12's Avatar
    kingdon12 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 2, 2010, 12:24 AM
    Full absorption vs variable costing
    Sales: 12,000 units at $17 each
    Actual production 15,000 units
    Expected volume of production 18,000 units
    Manufacturing costs incurred
    Variable $120,000
    Fixed 63,000
    Nonmanufacturing costs incurred
    Variable $ 24,000
    Fixed 18,000

    1. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and
    the firm uses a “full absorption” approach to product costing. Compute (a) the cost assigned to
    December 31, 20X7, inventory; and (b) operating income for the year ended December 31, 20X7.
    (Do not prepare a statement.)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Mar 2, 2010, 01:17 AM

    Please start your own thread for your question instead of tagging onto other people's. I've moved yours as your own thread.

    Then please review the guidelines for posting homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
    These are in the red print right at the top of this forum.
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