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Oakwood Corporation Oakwood Corporation Produces a Single Product

Question 167

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Oakwood Corporation Oakwood Corporation produces a single product.The following cost structure applied to its first year of operations:
Oakwood Corporation Oakwood Corporation produces a single product.The following cost structure applied to its first year of operations:   Refer to Oakwood Corporation.Assume for this question only that during the current year Oakwood Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.How much larger or smaller would Oakwood Corporation's income be if it uses absorption rather than variable costing? A) The absorption costing income would be $6,000 larger. B) The absorption costing income would be $6,000 smaller. C) The absorption costing income would be $4,800 larger. D) The absorption costing income would be $4,000 smaller. Refer to Oakwood Corporation.Assume for this question only that during the current year Oakwood Corporation manufactured 5,000 units and sold 3,800.There was no beginning or ending work-in-process inventory.How much larger or smaller would Oakwood Corporation's income be if it uses absorption rather than variable costing?


A) The absorption costing income would be $6,000 larger.
B) The absorption costing income would be $6,000 smaller.
C) The absorption costing income would be $4,800 larger.
D) The absorption costing income would be $4,000 smaller.

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