Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.Units Produced this year20,000units sold this year12,000Direct Materials$12 per unitDirect Labor$14 per unitVariable overhead$3 per unitFixed Overhead$90,000Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.

Net income is the amount earned by an entity after deducting the expenses from the revenues.

Answered: Belle Company reports the following…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units Produced this year	20,000
units sold this year	12,000
Direct Materials	$12 per unit
Direct Labor	$14 per unit
Variable overhead	$3 per unit
Fixed Overhead	$90,000

Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.

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