Chamiching makes hacksaw blades.Inventory values are determined using the first in,first out (FIFO) method.Production and sales data for the first three years appear below. $\begin{array}{ccc}\text { Hacksaw blades } & \text { Sold } & \text { Produced } \\\text { Yr } 1 & 18,000 & 22,000 \\\text { Yr } 2 & 25,000 & 23,000 \\\text { Yr } 3 & 37,000 & 35,000\end{array}$
$\begin{array} { l l c } & \text { Sales price } & \text { Full Cost } \\Yr 1 & \$ 10.00 & \$ 6.00 \\\text { Yr } 2& \$ 11.00 & \$ 6.60 \\Yr 3 & \$ 12.00 & \$ 7.60\end{array}$
In the first year,variable costs accounted for half of the full costs.Total fixed production costs increased each subsequent year by 20%,as a result of step-fixed costs and a general inflationary price increase.
For Chamiching,when variable costing income is reconciled to absorption costing income,which of the following is true?

Question

Chamiching makes hacksaw blades.Inventory values are determined using the first in,first out (FIFO) method.Production and sales data for the first three years appear below.

\begin{array}{ccc}\text { Hacksaw blades } & \text { Sold } & \text { Produced } \\\text { Yr } 1 & 18,000 & 22,000 \\\text { Yr } 2 & 25,000 & 23,000 \\\text { Yr } 3 & 37,000 & 35,000\end{array}

\begin{array} { l l c } & \text { Sales price } & \text { Full Cost } \\Yr 1 & \$ 10.00 & \$ 6.00 \\\text { Yr } 2& \$ 11.00 & \$ 6.60 \\Yr 3 & \$ 12.00 & \$ 7.60\end{array}

In the first year,variable costs accounted for half of the full costs.Total fixed production costs increased each subsequent year by 20%,as a result of step-fixed costs and a general inflationary price increase.
For Chamiching,when variable costing income is reconciled to absorption costing income,which of the following is true?

Quizplus · Accepted Answer

The Answer of Chamiching makes hacksaw blades.Inventory values are determined using the first in,first out (FIFO)method.Production and sales data for the first three years appear below. $\begin{array}{ccc} \text { Hacksaw blades } & \text { Sold } & \text { Produced } \ \text { Yr } 1 & 18,000 & 22,000 \ \text { Yr } 2 & 25,000 & 23,000 \ \text { Yr } 3 & 37,000 & 35,000 \end{array}$ $$\begin{array} { l l c } & \text { Sales price } & \text { Full Cost } \ Yr 1 & \$ 10.00 & \$ 6.00 \ \text { Yr } 2& \$ 11.00 & \$ 6.60 \ Yr 3 & \$ 12.00 & \$ 7.60 \end{array}$$ In the first year,variable costs accounted for half of the full costs.Total fixed production costs increased each subsequent year by 20%,as a result of step-fixed costs and a general inflationary price increase. For Chamiching,when variable costing income is reconciled to absorption costing income,which of the following is true?

Chamiching Makes Hacksaw Blades In the First Year,variable Costs Accounted for Half of the First