Figure 8-7. Ramon Company reported the following units of production and sales for June and July 2011:
Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month.
Refer to Figure 8-7.How much was income for July using absorption costing?
A)$50,000
B)$20,000
C)$80,000
D)$40,000

Question

Figure 8-7. Ramon Company reported the following units of production and sales for June and July 2011:
 Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month.
Refer to Figure 8-7.How much was income for July using absorption costing?
A)$50,000 
B)$20,000 
C)$80,000 
D)$40,000

Quizplus · Accepted Answer

The Answer of Figure 8-7. Ramon Company reported the following units of production and sales for June and July 2011:
 Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month.
Refer to Figure 8-7.How much was income for July using absorption costing?
A)$50,000 
B)$20,000 
C)$80,000 
D)$40,000