What is the net operating income for month under absorption


Faxon Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price............................ $137

Units in beginning inventory...... 0

  • Units produced........................ $3000
  • Units sold............................... $2900
  • Units in ending inventory.......... $100

Variable costs per unit:

  • Direct materials.................. $40
  • Direct labor........................ $53
  • Variable manufacturing overhead...... $6
  • Variable selling and administrative..... $9

Fixed costs:

  • Fixed manufacturing overhead.............. $69,000
  • Fixed selling and adminstrative............. $5800

What is the net operating income for the month under absorption costing?

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Accounting Basics: What is the net operating income for month under absorption
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