Below is presented information regarding the production process of Ghavidel Manufacturing for a two month period.

Required:
(a) Compute the operating income under variable costing and absorption costing for each month.
(b) Provide and explanation for the difference in operating income between the two methods in each month.

Question

Below is presented information regarding the production process of Ghavidel Manufacturing for a two month period.
 
Required:
(a) Compute the operating income under variable costing and absorption costing for each month.
(b) Provide and explanation for the difference in operating income between the two methods in each month.

Quizplus · Accepted Answer

The Answer of Below is presented information regarding the production process of Ghavidel Manufacturing for a two month period.
 
Required:
(a) Compute the operating income under variable costing and absorption costing for each month.
(b) Provide and explanation for the difference in operating income between the two methods in each month.

Below Is Presented Information Regarding the Production Process of Ghavidel