Hopson Manufacturing uses an actual cost system for product costing. The company's income statement for 2006 is presented below: a. When absorption costing was used, how much fixed manufacturing overhead was deferred in finished goods inventory?
b. Recast the income statement for 2006 using variable costing.
c. Reconcile variable costing income and absorption costing income.

Question

Hopson Manufacturing uses an actual cost system for product costing. The company's income statement for 2006 is presented below:  a. When absorption costing was used, how much fixed manufacturing overhead was deferred in finished goods inventory?
b. Recast the income statement for 2006 using variable costing.
c. Reconcile variable costing income and absorption costing income.

Quizplus · Accepted Answer

The Answer of Hopson Manufacturing uses an actual cost system for product costing. The company's income statement for 2006 is presented below:  a. When absorption costing was used, how much fixed manufacturing overhead was deferred in finished goods inventory?
b. Recast the income statement for 2006 using variable costing.
c. Reconcile variable costing income and absorption costing income.

Hopson Manufacturing Uses an Actual Cost System for Product Costing