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 |
WU12 Question 1 Not yet Canyon reported 5106,000 of net income for the year by using...
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