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Using the Given Information, Determine the Income Under Both the Absorption

Question 41

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Using the given information, determine the income under both the absorption and the direct (variable) costing methods for CRL Company this year. Explain the difference, if any.  Beginning Inventory units −0− Units produced 12,400 Ending Inventory 1,400Sales price per unit $50.00 Variable manufacturing costs per unit 22.00 Variable selling & administrative costs per unit5.00 Fixed manufacturing costs $58,900 Fixed selling and administrative costs $75,020\begin{array}{llcc} \text { Beginning Inventory units } & -0- \\ \text { Units produced } &12,400\\ \text { Ending Inventory } &1,400\\ \text {Sales price per unit } &\$50.00\\ \text { Variable manufacturing costs per unit } &22.00\\ \text { Variable selling \( \& \) administrative costs per unit} &5.00\\ \text { Fixed manufacturing costs } &\$58,900\\ \text { Fixed selling and administrative costs } &\$75,020\\\end{array}

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