Columbia Corporation produces a single product. The company\'s variable costing
ID: 2561686 • Letter: C
Question
Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Columbia Corporatiorn Income Statement For the Month ended November 30 Sales ($23 per unit) Variable expenses: $933,800 609,000 121,800 730,800 203,000 Variable cost of goods sold Variable selling expense Total variable expenses Contribution margin Fixed expenses: 142,000 35,500 177,500 $ 25,500 Manufacturing Selling and administrative Total fixed expenses Net operating income During November, 35,500 units were manufactured and 8,670 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months. Under absorption costing, for November the company would report a:Explanation / Answer
fixed manufacturing overhead cost per unit 142,000/35,500 4 sold units = 933800/23 40600 beginning inventroy 8,670 Closing inventory = (44,170-40,600) 3570 balance 5100 income under variable costing 25,500 less :fixed overhead released in beginning inventory (5100*4) -20400 income under Absorption costing 5,100 answer $5,100 profit