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View Full Version : Full absorption vs variable costing


kingdon12
Mar 2, 2010, 12:24 AM
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
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/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html
These are in the red print right at the top of this forum.