Cape Cod Technolgy Inc. manufactures heavy duty flash lights. January and February operations were identical in every way except for the planned production.
January had a production denominator of 80,000 units.
February had a production denominator of 60,000 units.
Fixed manufacturing costs totaled $200,000.
Sales for both months totaled 62,000 units with variable manufacturing costs of $4 per unit. Selling and administrative costs were $0.60 per unit variable and $51,000 of fixed. The selling price was $10 per unit.
Required:
Compute the operating income for both months using absorption costing.

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The Answer of Cape Cod Technolgy Inc. manufactures heavy duty flash lights. January and February operations were identical in every way except for the planned production.
January had a production denominator of 80,000 units.
February had a production denominator of 60,000 units.
Fixed manufacturing costs totaled $200,000.
Sales for both months totaled 62,000 units with variable manufacturing costs of $4 per unit. Selling and administrative costs were $0.60 per unit variable and $51,000 of fixed. The selling price was $10 per unit.
Required:
Compute the operating income for both months using absorption costing.