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 per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior 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 per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior 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

The Answer of 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 per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior 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

Columbia Corporation Produces a Single Product