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The following data pertain to April pertain for Jennings      Manufacturing Company:          Beginning Inventory……………….3,000          Unit...

The following data pertain to April pertain for Jennings      Manufacturing Company:

         Beginning Inventory……………….3,000

         Unit sold……………………………9,000

         Unit Produced………………………8,000

         Sales price per unit…………………$30

         Direct Manufacturing cost per unit…$10

         Fixed factory overhead-total……….$40,000

         Fixed factory overhead-per unit……$5

         Commercial expenses (all fixed)…..$50,000

         Required:

  1. Prepare an income statement using absorption costing
  2. Prepare an income statement using direct costing
  3. Provide computation explaining the difference in

       operating income between the two methods.

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ekkarill92 answered 1 year ago
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