Split Yellow Co. is a banana plantation that grows and sells bananas in Florida. The company is publicly traded on the stock market: however, management prefers to use variable costing for decision purposes. The company's books are adjusted to arrive at Absorption Income for financial reporting purposes. The company reported the following financial information for the past month:
The company tracks harvested bananas that have not yet been shipped out as "in-process." This inventory of food increased from the equivalent of 40 full truckloads at the beginning of the month to 70 full truckloads at the end of the month.
What was Absorption Net Income?

Question

Split Yellow Co. is a banana plantation that grows and sells bananas in Florida. The company is publicly traded on the stock market: however, management prefers to use variable costing for decision purposes. The company's books are adjusted to arrive at Absorption Income for financial reporting purposes. The company reported the following financial information for the past month:
  The company tracks harvested bananas that have not yet been shipped out as "in-process." This inventory of food increased from the equivalent of 40 full truckloads at the beginning of the month to 70 full truckloads at the end of the month.
What was Absorption Net Income?

Quizplus · Accepted Answer

The Answer of Split Yellow Co. is a banana plantation that grows and sells bananas in Florida. The company is publicly traded on the stock market: however, management prefers to use variable costing for decision purposes. The company's books are adjusted to arrive at Absorption Income for financial reporting purposes. The company reported the following financial information for the past month:
  The company tracks harvested bananas that have not yet been shipped out as "in-process." This inventory of food increased from the equivalent of 40 full truckloads at the beginning of the month to 70 full truckloads at the end of the month.
What was Absorption Net Income?