Question: Please help correct and finish requirement 2 Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of




Please help correct and finish requirement 2
Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit. Read the requirements. Requirements 1. Miami's 2017 operating income using absorption costing is (a) $600,000, (b) $360,000, (c) $780,000, (d) $1,020,000, or (e) none of these. Show supporting calculations. 2. Miami's 2017 operating income using variable costing is (a) $1,110,000, (b) $600,000, (c) $360,000, (d) $780,000, or (e) none of these. Show supporting calculations. Beginning inventory Variable manufacturing costs Cost of goods available for sale Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs 0 4,750,000 4,750,000 -1760000 2990000 2,210,000 6190000 750.000 Deduct ending inventory Variable cost of goods sold Variable operating costs Contribution margin Fixed manufacturing costs Fixed operating costs Operating income -1760000 2990000 2,210,000 6190000 750,000 420,000
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