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Figure 7-2 Steele Ltd. Has the Following Information for January, February, and February

Question 27

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Figure 7-2
Steele Ltd. has the following information for January, February, and March 2011: Figure 7-2 Steele Ltd. has the following information for January, February, and March 2011: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. -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 June using variable costing? A) £40,000 B) £20,000 C) £(40,000) D) £(20,000) Production costs per unit (based on 10,000 units) are as follows: Figure 7-2 Steele Ltd. has the following information for January, February, and March 2011: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. -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 June using variable costing? A) £40,000 B) £20,000 C) £(40,000) D) £(20,000) There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months.
-Ramon Company reported the following units of production and sales for June and July 2011: Figure 7-2 Steele Ltd. has the following information for January, February, and March 2011: Production costs per unit (based on 10,000 units) are as follows: There were no beginning inventories for January 2011, and all units were sold for £50. Costs are stable over the three months. -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 June using variable costing? A) £40,000 B) £20,000 C) £(40,000) D) £(20,000) 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 June using variable costing?


A) £40,000
B) £20,000
C) £(40,000)
D) £(20,000)

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