DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income Statement For the month ended August 31 Sales ($15 per unit)... Variable expenses: Variable cost of goods sold Variable selling expense Total variable expenses.. Contribution margin...... Fixed expenses: Fixed manufacturing.................. Fixed selling and administrative. Total fixed expenses.... Net operating income. ******************** $600.000 360,000 80,000 440,000 160,000 105,000 35,000 140,000 $ 20,000 The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. 102. The value of the company's inventory on August 31 under the absorption costing method is: A. $27,000 B. $42,000 C. $36.000 D. $47,000

DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income Statement For the month ended August 31 Sales ($15 per unit)... Variable expenses: Variable cost of goods sold Variable selling expense Total variable expenses.. Contribution margin...... Fixed expenses: Fixed manufacturing.................. Fixed selling and administrative. Total fixed expenses.... Net operating income. ******************** $600.000 360,000 80,000 440,000 160,000 105,000 35,000 140,000 $ 20,000 The company produced 35,000 units in August and the beginning inventory consisted of 8,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. 102. The value of the company's inventory on August 31 under the absorption costing method is: A. $27,000 B. $42,000 C. $36.000 D. $47,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14PA: Summarized data for Walrus Co. for its first year of operations are: A. Prepare an income statement...

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