Bernardo Company reported the following units of production and sales for August and September 2018: $\begin{array}{lrr}&\text { Units }\
\hline \text { Month }& \text { Produced } & \text { Sold } \
\text { August } 2018 & 100,000 & 90,000 \
\text { September } 2018 & 100,000 & 105,000
\end{array}$
Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A)$50,000
B)$80,000
C)$20,000
D)$40,000

Question

Bernardo Company reported the following units of production and sales for August and September 2018: $\begin{array}{lrr}&\text { Units }\
\hline  \text { Month }& \text { Produced } & \text { Sold } \
\text { August } 2018 & 100,000 & 90,000 \
\text { September } 2018 & 100,000 & 105,000
\end{array}$
Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A)$50,000
B)$80,000
C)$20,000
D)$40,000

Quizplus · Accepted Answer

The Answer of Bernardo Company reported the following units of production and sales for August and September 2018: $\begin{array}{lrr}&\text { Units }\
\hline  \text { Month }& \text { Produced } & \text { Sold } \
\text { August } 2018 & 100,000 & 90,000 \
\text { September } 2018 & 100,000 & 105,000
\end{array}$
Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A)$50,000
B)$80,000
C)$20,000
D)$40,000

Bernardo Company Reported the Following Units of Production and Sales