Jean Peck's Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,250 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month.
The following information is provided for the month of January:
$\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 120 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 90,000 \text { per month } \
\text { Fixed Administrative expenses } & \$ 25,000 \text { per month }
\end{array}$ At the end of the month Jean Peck's Furniture's has an ending inventory of finished goods of 750 units. The company also incurs a sales commission of $10 per unit.
-What is the operating income when using absorption costing?

Question

Jean Peck's Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,250 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month.
The following information is provided for the month of January:
 $\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 120 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 90,000 \text { per month } \
\text { Fixed Administrative expenses } & \$ 25,000 \text { per month }
\end{array}$ At the end of the month Jean Peck's Furniture's has an ending inventory of finished goods of 750 units. The company also incurs a sales commission of $10 per unit.
-What is the operating income when using absorption costing?

Quizplus · Accepted Answer

The Answer of Jean Peck's Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $300 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,250 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month.
The following information is provided for the month of January:
 $\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 120 \text { per unit } \
\text { Fixed manufacturing costs } & \$ 90,000 \text { per month } \
\text { Fixed Administrative expenses } & \$ 25,000 \text { per month }
\end{array}$ At the end of the month Jean Peck's Furniture's has an ending inventory of finished goods of 750 units. The company also incurs a sales commission of $10 per unit.
-What is the operating income when using absorption costing?

Jean Peck's Furniture's Manufactures Tables for Hospitality Sector At the End of the Month Jean Peck's Furniture's Has