The beginning inventory is 8,000 units. All of the units that were manufactured during the period...

The beginning inventory is 8,000 units. All of the units that were manufactured during the period and 8,000 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $35 per unit, and variable manufacturing costs are $79 per unit.

a. Determine whether variable costing operating income is less than or greater than absorption costing operating income.

b. Determine the difference in variable costing and absorption costing operating income.
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Expert Solution

ekkarill92 answered 2 years ago

Variable Costing—Sales Exceed Production The beginning inventory is 8,000 units. All of the units that were...

Variable Costing—Sales Exceed Production The beginning inventory is 8,000 units. All of the units that were manufactured during the period and 8,000 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $93 per unit. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income. $

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