Crystal Company produces a single product. The company's variable costing income statement for the month of May appears below: The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
-Under absorption costing, for the month ended May 31, the company would report a:
A) $30,000 loss
B) $0 profit
C) $30,000 profit
D) $60,000 profit

Question

Crystal Company produces a single product. The company's variable costing income statement for the month of May appears below:  The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
-Under absorption costing, for the month ended May 31, the company would report a:
A) $30,000 loss 
B) $0 profit 
C) $30,000 profit 
D) $60,000 profit

Quizplus · Accepted Answer

The Answer of Crystal Company produces a single product. The company's variable costing income statement for the month of May appears below:  The company produced 80,000 units in May and the beginning inventory consisted of 25,000 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.
-Under absorption costing, for the month ended May 31, the company would report a:
A) $30,000 loss 
B) $0 profit 
C) $30,000 profit 
D) $60,000 profit

Crystal Company Produces a Single Product