Use the following information for items
Green Company sells its product for $11,000 per unit.Variable costs per unit are: manufacturing, $6,000; and selling and administrative, $125.Fixed costs are: $30,000 manufacturing overhead, and $40,000 selling and administrative.There was no beginning inventory at 1/1/18.Production was 20 units per year in 2018-2020.Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020.
-Income under variable costing for 2020 is
A) $33,000.
B) $39,000.
C) $41,000.
D) $47,000.
Correct Answer:
Verified
Q28: Under absorption costing when inventory increases in
Q29: Use the following information for items
Green Company
Q30: Management may be tempted to overproduce
A)when using
Q31: In income statements prepared under absorption
Q32: EKP's unit production cost under variable costing
Q33: M&H's unit production cost under variable costing
Q35: Absorption costing
A)is preferred to variable costing for
Q36: Under absorption costing when production exceeds sales
Q37: When production exceeds sales
A)ending inventory under variable
Q38: Under GAAP,
A)absorption costing is required to be
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