RusenasCorp, a manufacturer of Lithuanian Diving Team Caps, uses a practical capacity measure of 75,000 units. Assume there is no beginning inventory, ending finished goods inventory was 5,000 units, and assume the following information about RusenasCorp:

Budgeted Fixed Costs $675,000

Variable Mfg. Cost per unit $5

Sales Price $20

Units Produced 75,000

Variable Nonmanufacturing $1.50

Fixed Nonmanufacturing $70,000

• Required:
• 
  
• 1.Reproduce an absorption costing income statement for RusenasCorp assuming there are no variances.
• 2.What would RusenasCorp’s net operating income be if it used a variable costing system?

1. 
   

Answer rating: 100% (QA)

Absorption Costing Income Statement RusenasCorp Income Statement For the Year Ended December 31 2023 ... View the full answer