Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: During November, 35,000 units were manufactured and 8,000 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months.
Under absorption costing, for November the company would report a:
A) $145,000 profit
B) $125,000 profit
C) $125,000 loss
D) $120,000 profit

Question

Columbia Corporation produces a single product. The company's variable costing income statement for November appears below:  During November, 35,000 units were manufactured and 8,000 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months.
Under absorption costing, for November the company would report a:
A) $145,000 profit 
B) $125,000 profit 
C) $125,000 loss 
D) $120,000 profit

Quizplus · Accepted Answer

Units sold = $1,200,000 ÷ $30 per unit = 40,000 units
 11eacbfc_c6ba_a8a6_8ffe_096992e17e86_TB7552_00 11eacbfc_c6ba_cfb7_8ffe_bf201f5ae1a9_TB7552_00

Columbia Corporation Produces a Single Product