Variable Costing—Sales Exceed Production The beginning inventory is 8,100 units.

Question

Variable Costing—Sales Exceed Production The beginning inventory is 8,100 units. All of the units that were manufactured during the period and 8,100 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $42 per unit, and variable manufacturing costs are $83 per unit.

a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. Variable costing income from operations is greater than absorption costing.

b. Determine the difference in variable costing and absorption costing income from operations. $

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount a) Variable costing income from operations is greater than absorption costing. b) Fixed Manufacturing costs in Beginning inventory = 8100*42         340,200.00 difference in variable costing and absorption costing income from operations is the fixed manufacturing overhead in beginning inventory which is           340,200.00

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