Whittier Company produced 10,000 cases of cookies this year. It sold 9,500 cases for $20 each. There
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Whittier Company produced 10,000 cases of cookies this year. It sold 9,500 cases for $20 each. There were no beginning inventories. Variable manufacturing costs were $60,000, and fixed manufacturing expenses were $100,000. Selling and administrative expenses were $20,000, all fixed.
a. Prepare income statements using the variable costing and absorption costing.
b. Explain the difference between incomes computed in part a.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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