Rahul Exercise 19-22A (Algo) Converting variable costing income to absorption costing income LO A2A manufacturer reports the following information for the past three years.Year 1$ 123,500Variable costing incomeBeginning finished goods inventory (units)Ending finished goods inventory (units)Fixed overhead (FOH) per unitVariable costing incomeAbsorption costing incomeCompute income for each of the three years using absorption costing. Hint: Fixed overhead in inventory equals the FOH per unit xUnits in inventory. (Amounts to be deducted should be indicated with a minus sign.)Year 101,650$ 3.40Year 2Year 2$ 128,8001,6501,150$ 3.40Year 3Year 3$ 130,2001,1501,250$ 3.40

The income under the computation of absorption costing from the variable costing income is that the…

Compute income for each of the three years using absorption costing. Hint: Fixed overhead in inventory equals the FOH per unit x Units in inventory. (Amounts to be deducted should be indicated with a minus sign.) Variable costing income Absorption costing income Year 1 Year 2 Year 3

Compute income for each of the three years using absorption costing. Hint: Fixed overhead in inventory equals the FOH per unit x Units in inventory. (Amounts to be deducted should be indicated with a minus sign.) Variable costing income Absorption costing income Year 1 Year 2 Year 3

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable...

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Question

Rahul

Exercise 19-22A (Algo) Converting variable costing income to absorption costing income LO A2
A manufacturer reports the following information for the past three years.
Year 1
$ 123,500
Variable costing income
Beginning finished goods inventory (units)
Ending finished goods inventory (units)
Fixed overhead (FOH) per unit
Variable costing income
Absorption costing income
Compute income for each of the three years using absorption costing. Hint: Fixed overhead in inventory equals the FOH per unit x
Units in inventory. (Amounts to be deducted should be indicated with a minus sign.)
Year 1
0
1,650
$ 3.40
Year 2
Year 2
$ 128,800
1,650
1,150
$ 3.40
Year 3
Year 3
$ 130,200
1,150
1,250
$ 3.40

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