Elbon Company, which has only one product, has provided the following data conce
ID: 2352681 • Letter: E
Question
Elbon Company, which has only one product, has provided the following data concerning its most recent month of operations:SELLING PRICE ......109
UNUTS IN BEGINNING INVENTORY...0
UNITS PRODUCED....2,100
UNITS SOLF...1700
UNITS IN ENDING INVENTORY....400
VARAIBLE COST PER UNIT:
DIRECT MATERIALS....14
DIRECT LABOR....31
VARIABLE MANUFACTURING OVERHEAD....6
VARIABLE SELLING AND ADMINISTRATIVE....11
FIXED COST:
FIXED MANUFACTURING OVERHEAD....46,200
FIXED SELLING AND ADMINISTRATIVE....32,300
What is the net operating income for the month under absorption costing?
Explanation / Answer
absorption costing
sales
185300
cost of goods sold
124100
gross margin
61200
selling and admin
51000
net income
10200
absorption costing
sales
185300
cost of goods sold
124100
gross margin
61200
selling and admin
51000
net income
10200