Bernardo Company reported the following units of production and sales for August and September 2014: Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A) $50,000
B) $80,000
C) $20,000
D) $40,000

Question

Bernardo Company reported the following units of production and sales for August and September 2014:  Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A) $50,000 
B) $80,000 
C) $20,000 
D) $40,000

Quizplus · Accepted Answer

The Answer of Bernardo Company reported the following units of production and sales for August and September 2014:  Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?
A) $50,000 
B) $80,000 
C) $20,000 
D) $40,000

Bernardo Company Reported the Following Units of Production and Sales