Flygt Corporation net income between absorption and variable costing?

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*19. Flygt Corporation sells one product, its waterproof hiking boot. It began operations in the current year and had an ending inventory of 10,500 units. The company sold 20,000 units throughout the year. Fixed manufacturing overhead is $5 per unit, and total manufacturing cost per unit is $20 (including fixed manufacturing overhead costs). What is the differ- ence in net income between absorption and variable costing?

*20. If production equals sales, what, if any, is the differ- ence between net income under absorption costing versus under variable costing?

*21. If production is greater than sales, how does absorp- tion costing net income differ from variable costing net income?

*22. In the long run, will net income be higher or lower under variable costing compared  to  absorption costing?

 

    • 8 years ago
    Flygt Corporation net income between absorption and variable costing?
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