The level of inventory of a manufactured product has increased by 7,827 units during a period. The following data are also available:   Variable Fixed Unit manufacturing costs of the period $13 $3 Unit operating expenses of the period $4 $1 What would be the effect on income from operations if absorption costing is used rather than variable costing? a.$23,481 increase b.$31,308 increase c.$23,481 decrease d.$31,308 decrease

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A: Unit costs include all manufacturing fixed and variable cost. Variable costs are flexible as per…

Q: Farris Corporation, which has only one product, has provided the following data concerning its most…

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A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

Q: The level of inventory of a manufactured product has increased by 7,819 units during a period. The…

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Q: absorption costing

A: The operating income under absorption costing will be lower by the increase in units of inventory…

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A: Absorption costing: It implies to a costing method that considers or takes into account all the…

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Q: unit cost of goods manufactured,

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A:

Q: What was the absorption costing net operating income last year?

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A: Solution.. Unit product cost under variable costing  = Direct material + direct labor + variable…

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Q: Data concerning Dakota Enterprises' operations last year appear below: Units in the Beginning…

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Q: units In its first year of operations: direct materials, $14 per unit, direct labor, $10 per unit,…

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A: solution note Dear student as per the Q&A guideline we are required to answer the first question…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.