Ramon Company reported the following units of production and sales for June and July:
Income under absorption costing for June was $40,000; income under variable costing for July was $50,000. Fixed costs were $600,000 for each month.
-Refer to Figure 8-7. How much was income for July using absorption costing?
A) $50,000
B) $20,000
C) $80,000
D) $40,000

Question

Ramon Company reported the following units of production and sales for June and July:
  Income under absorption costing for June was $40,000; income under variable costing for July was $50,000. Fixed costs were $600,000 for each month.
-Refer to Figure 8-7. How much was income for July using absorption costing?
A) $50,000 
B) $20,000 
C) $80,000 
D) $40,000

Quizplus · Accepted Answer

Without the specific details from Figure 8-7, it's impossible to accurately determine the income for July using absorption costing. However, the correct answer to this question is based on the information that would have been provided in the figure, which is not visible in this format. Typically, absorption costing includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product, and the income would be calculated based on sales revenue minus these costs.

Ramon Company Reported the Following Units of Production and Sales