Score: 0 of 30 pts E9-26 (similar to) Question Help * Albany, Inc., planned and

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Score: 0 of 30 pts E9-26 (similar to) Question Help * Albany, Inc., planned and actually manufactured 230,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $23 per unit Varable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $690, operating (nonmanufacturing) costs totaled $440,000. Albany sold 160,000 units of product at $42 per unit. Read the tequirements Requirement 1. Albany's 2017 operating income using absor supporting calculations ption costing is (a) $520,000, (b) $310,000, (c) $750,000, (d) $960,000, or (e) none of these. Show n the absorption costing calculation of operating income and enter the supporting amounts. (For amounts with a S0 balance, make sure to enter "0" in the appropriate cell.) Absorption costing Requirements Revenues Cost of goods sold Beginning inventory Vanable manutacturing costs Allocated fixed manufacturing costs Cost of goods avaitable for sale Deduct ending inventory 1. Albany's 2017 operating income using absorption costing is (a) $520,000, (b) S310,000, (c) $750,000, (d) 5960.000, or (e) none of these. Show supporting calculations 2. Albaný's 2017 operating income using variable costing is (a) $1,000,000, (b) $520.000. (c) 5310,000, (d) $750,000, or (e) none of these. Show supporting calculations. Cost of goods sold Print Done Gross margi choose from any ist or enter any number in the input helds and then cick Check Answer Clear All Check Answer remaining

Explanation / Answer

unit product cost under under absorption variable costing costing variable manufacturing cost 23 23 FMOH (690,000/230,000) 3 0 unit product cost 26 23 1) income under absorption costing sales (160,000*42) 6720000 less variable cost of goods sold (@26) 4160000 gross profit 2560000 Selling expense variable (160,000*10) -1600000 fxied -440,000 Net income 520000 answer option a is the answer 2) income under variable costing sale 6720000 variable COGS (160,000*23) 3680000 Variable selling 1,600,000 contribution margin 1,440,000 fixed expense FMOH 690,000 Fixed non manufacturing 440,000 Net income 310,000 answer option c is the answer

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