Pasta Corp. manufactures a variety of products. The ff. data pertain to the company's operations over the last 2 years;

Variable Costing Net Operating Income, last year .....................P 82,700

Variable Costing Net Operating Income, this year .....................87,800

Increase in ending inventory last year ....................................900

Decrease in ending inventory this year ...................................3,100

Fixed manufacturing overhead cost per unit2

REQUIRED:

a)Determine the absorption costing net operating income last year. 

 

b)Determine the absorption costing net operating income this year.

Answer rating: 100% (QA)

To determine the absorption costing net operating income we need to consider both variable and fixed ... View the full answer