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WU12 Question 1 Not yet Canyon reported 5106,000 of net income for the year by using variable costing. The company had no beg
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Answer:

Option 4th sis correct. i.e$ 115,000.

Calculating Income under Absorbtion Costing
Amount($)
Sales(w.n.1)               9,61,000
Less: Manufacturing Costs
        Variable Cost (50000*15)               7,50,000
Add: Fixed Cost               1,50,000
Less :Ending Inventory (w.n 2)                  54,000
Total Cost of Goods Sold               8,46,000
Net Income (sale- cogs)               1,15,000
Calculating Sales with the use of Variable Costing Income Statement
Operating Income A               1,06,000
Fixed Cost B               1,50,000
Variable Cost(47000*$15) C                      7,05,000
Sales (A+B+C)                      9,61,000
Ending Inventory                          54,000
(750,000 + 150,000)*3000 units/50,000 Units
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