Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. major company produces a single product. last year

Major Company produces a single product. Last year, the company's variable productions costs totaled $8,000...

60.1K

Verified Solution

Question

Accounting

Major Company produces a single product. Last year, the company's variable productions costs totaled $8,000 and its fixed manufacturing overhead costs totaled $4,800. The company produced 4,000 units during the year and sold 3,600 units. Assuming no units in the beginning inventory:

1. the net operating income under absorption costing for the year will be $480 lower than net operating income under variable costing.

2. the ending inventory under variable costing will be $480 lower than the ending inventory under absorption costing.

3.under variable costing, the units in ending inventory will be costed at $3.20 each.

4. the net operating income under absorption costing for the year will be $800 lower than net operating income under variable costing

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students