Ramon Company reported the following units of production and sales for June and July 2011: Net income under absorption costing for June was £40,000; net income under variable costing for July was £50,000. Fixed manufacturing costs were £600,000 for each month. How much was net income for July using absorption costing?
A) £50,000
B) £20,000
C) £80,000
D) £40,000

Question

Ramon Company reported the following units of production and sales for June and July 2011:  Net income under absorption costing for June was £40,000; net income under variable costing for July was £50,000. Fixed manufacturing costs were £600,000 for each month. How much was net income for July using absorption costing?
A) £50,000 
B) £20,000 
C) £80,000 
D) £40,000

Quizplus · Accepted Answer

The Answer of Ramon Company reported the following units of production and sales for June and July 2011:  Net income under absorption costing for June was £40,000; net income under variable costing for July was £50,000. Fixed manufacturing costs were £600,000 for each month. How much was net income for July using absorption costing?
A) £50,000 
B) £20,000 
C) £80,000 
D) £40,000

Ramon Company Reported the Following Units of Production and Sales