A manufacturer reports the information below for three recent years. Year 1 $ 116,000 Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed overhead per unit Variable costing income Fixed overhead in ending inventory Fixed overhead in beginning inventory Absorption costing income Year 1 0 1,500 $ 3.10 Compute income for each of the three years using absorption costing. (Amounts to be deducted should be indicated by a min sign.) Year 2 Year 2 $ 120,400 1,500 1,000 $ 3.10 Year 3 Year 3 $ 124,950 1,000 1,100 $ 3.10

A manufacturer reports the information below for three recent years. Year 1 $ 116,000 Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed overhead per unit Variable costing income Fixed overhead in ending inventory Fixed overhead in beginning inventory Absorption costing income Year 1 0 1,500 $ 3.10 Compute income for each of the three years using absorption costing. (Amounts to be deducted should be indicated by a min sign.) Year 2 Year 2 $ 120,400 1,500 1,000 $ 3.10 Year 3 Year 3 $ 124,950 1,000 1,100 $ 3.10

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....

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