Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units Produced this year 20,000 units sold this year 12,000 Direct Materials $12 per unit Direct Labor $14 per unit Variable overhead $3 per unit Fixed Overhead $90,000 Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.
Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year. Units Produced this year 20,000 units sold this year 12,000 Direct Materials $12 per unit Direct Labor $14 per unit Variable overhead $3 per unit Fixed Overhead $90,000 Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
| Units Produced this year | 20,000 |
| units sold this year | 12,000 |
| Direct Materials | $12 per unit |
| Direct Labor | $14 per unit |
| Variable |
$3 per unit |
| Fixed Overhead | $90,000 |
Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.
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