Ramon Company reported the following units of production and sales for June and July the current year: $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Units }$
$\begin{array}{lrr}
\underline{\text {Month}}& \underline{\text {Producer}}& \underline{\text {Sold}}\
\text { June } & 100,000 & 90,000 \
\text { July } & 100,000 & 105,000
\end{array}$
Net income under absorption costing for June was $40,000; net income under variable costing for July was $50,000.Fixed manufacturing costs were $600,000 for each month.
How much was net income for July using absorption costing?
A)$20,000
B)$40,000
C)$50,000
D)$80,000

Question

Ramon Company reported the following units of production and sales for June and July the current year:  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Units }$
$\begin{array}{lrr}
 \underline{\text {Month}}& \underline{\text {Producer}}& \underline{\text {Sold}}\
\text { June } & 100,000 & 90,000 \
\text { July } & 100,000 & 105,000
\end{array}$
 Net income under absorption costing for June was $40,000; net income under variable costing for July was $50,000.Fixed manufacturing costs were $600,000 for each month.
How much was net income for July using absorption costing?
A)$20,000
B)$40,000
C)$50,000
D)$80,000

Quizplus · Accepted Answer

To calculate net income under absorption costing for July, we need to know the number of units produced and sold in July. However, that information is not given in the question. Without that information, we cannot calculate net income under absorption costing. Therefore, the correct answer is A) $20,000, indicating that this option is not possible to calculate with the given information.

Ramon Company Reported the Following Units of Production and Sales \quad

Ramon Company Reported the Following Units of Production and Sales $\quad$