Brantley Inc. manufactures hair brushes that sell at wholesale for $6.00 per unit. Budgeted production in both 2012 and 2013 was 2,000 units and budgeted fixed overhead was $25,000 in each year. There was no beginning inventory in 2012. The following data summarized the 2012 and 2013 operations:
Required:
Determine income under both full costing and variable costing and explain the difference.

Question

Brantley Inc. manufactures hair brushes that sell at wholesale for $6.00 per unit. Budgeted production in both 2012 and 2013 was 2,000 units and budgeted fixed overhead was $25,000 in each year. There was no beginning inventory in 2012. The following data summarized the 2012 and 2013 operations:
  Required:
Determine income under both full costing and variable costing and explain the difference.

Quizplus · Accepted Answer

The Answer of Brantley Inc. manufactures hair brushes that sell at wholesale for $6.00 per unit. Budgeted production in both 2012 and 2013 was 2,000 units and budgeted fixed overhead was $25,000 in each year. There was no beginning inventory in 2012. The following data summarized the 2012 and 2013 operations:
  Required:
Determine income under both full costing and variable costing and explain the difference.