The following information is available for Barnes Company for the fiscal year ended December 31: Beginning finished goods inventory in units 0 Units produced 8,600 Units sold 5,900 Sales $ 1,180,000 Materials cost $ 172,000 Variable conversion cost used $ 86,000 Fixed manufacturing cost $ 946,000 Indirect operating costs (fixed) $ 118,000 The absorption costing operating income is:
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Ответ:
$378,000
Explanation:
The absorption costing operating income is shown below:-
Total manufacturing cost = Material cost + Variable conversion cost + Fixed manufacturing cost
= $172,000 + $86,000 + $946,000
= $1,204,000
Unit product cost = Total manufacturing cost ÷ Units produced
= $1,204,000 ÷ 8,600
= $140
Ending inventory in units = Produced - Sales
= 8,600 - 5,900
= 2,700
Ending inventory under absorption costing = Ending inventory in units × Unit product cost
= 2,700 × $140
= $378,000
Ответ: