Elbon Company, which has only one product, has provided the following data conce

ID: 2352681 • Letter: E

Question

Elbon Company, which has only one product, has provided the following data concerning its most recent month of operations:
SELLING PRICE ......109
UNUTS IN BEGINNING INVENTORY...0
UNITS PRODUCED....2,100
UNITS SOLF...1700
UNITS IN ENDING INVENTORY....400
VARAIBLE COST PER UNIT:
DIRECT MATERIALS....14
DIRECT LABOR....31
VARIABLE MANUFACTURING OVERHEAD....6
VARIABLE SELLING AND ADMINISTRATIVE....11
FIXED COST:
FIXED MANUFACTURING OVERHEAD....46,200
FIXED SELLING AND ADMINISTRATIVE....32,300

What is the net operating income for the month under absorption costing?

Explanation / Answer

absorption costing

sales

185300

cost of goods sold

124100

gross margin

61200

selling and admin

51000

net income

10200