Question

Kwan Manufacturing Company data for 20X0 follow:
Sales: 11,000 units at ....... $19 each
Actual production ....... 15,500 units
Expected volume of production ... 15,000 units
Manufacturing costs incurred
Variable ............. $124,000
Fixed ............... 54,000
Nonmanufacturing costs incurred
Variable ............ $ 11,000
Fixed ............. 17,800
1. Determine operating income for 20X0, assuming the firm uses the variable-costing approach to product costing. (Do not prepare a statement.)
2. Assume that there is no January 1, 20X0, inventory; no variances are allocated to inventory; and the firm uses a “full absorption” approach to product costing. Compute (a) the cost assigned to December 31, 20X0, inventory, and (b) operating income for the year ended December 31, 20X0.




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  • CreatedNovember 19, 2014
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