A manufacturing company that produces a single product has provided the following data concerning its most...

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of op Lower by $6,000 Lower by $63,000 Higher by $11,500 Higher by $29,000

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Answer 1

Answer #1

Answer

Units Produced are more than Units sold.
Hence, Absorption costing Net Income would be HIGHER, as Fixed manufacturing overhead will get deferred in the form of unsold units or in ending inventory.
Fixed manufacturing overhead per unit = $ 92000 / 4000 produced
= $ 23
Ending units = 500
Absorption costing net income would be HIGHER by $ 11,500 (500 units x $ 23)
Correct Answer = Option #3

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Answer 2

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