Pyne Company produces a single product. The company has 80,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit ( which was the same as last year). The company's net operating income is $145,000 higher under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in beginning inventory? Answer units
Pyne Company produces a single product. The company has 80,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit ( which was the same as last year). The company's net operating income is $145,000 higher under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in beginning inventory? Answer units
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 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Pyne Company produces a single product. The company has 80,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed
Answer units
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