Rich Glasses manufactures glass bottles.January and February operations were identical in every way except for the planned production.
January had a production denominator of 74,000 units.
February had a production denominator of 66,600 units.
Fixed manufacturing costs totaled $222,000.
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.

Question

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The Answer of Rich Glasses manufactures glass bottles.January and February operations were identical in every way except for the planned production.
January had a production denominator of 74,000 units.
February had a production denominator of 66,600 units.
Fixed manufacturing costs totaled $222,000.
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.

Rich Glasses Manufactures Glass Bottles