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Author Question: The following data are available for Brennan Soft Toys Company for the year ended September 30, ... (Read 54 times)

burton19126

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The following data are available for Brennan Soft Toys Company for the year ended September 30, 2017. 

Sales:24,000 units at $50 each
Expected and actual production:30,000 units
Manufacturing costs incurred:
Variable:$525,000
Fixed:$372,000
Nonmanufacturing costs incurred:
Variable:$144,800
Fixed:$77,400
Beginning inventories:none

Required: 
a.Determine operating income using the variable-costing approach.
b.Determine operating income using the absorption-costing approach.
c.Explain why operating income is not the same under the two approaches. 


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Marked as best answer by burton19126 on Mar 6, 2021

Viet Thy

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burton19126

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


ryansturges

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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