Boylan Company had an operating profit of $400,000 using variable costing in April, 2007. Beginning inventory was 36,000 units and ending inventory was 46,000 units. The committed (fixed) overhead was $10 per unit for the beginning and ending inventory. Sales were $900,000 and committed (fixed) operating expenses were $50,000.
Required: Calculate the operating profit in April, 2007 using absorption costing.

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The Answer of Boylan Company had an operating profit of $400,000 using variable costing in April, 2007. Beginning inventory was 36,000 units and ending inventory was 46,000 units. The committed (fixed) overhead was $10 per unit for the beginning and ending inventory. Sales were $900,000 and committed (fixed) operating expenses were $50,000.
Required: Calculate the operating profit in April, 2007 using absorption costing.

Boylan Company Had an Operating Profit of $400,000 Using Variable