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

question 41

Essay

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. $\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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Definitions:

Nuclear Power

The use of nuclear reactions to generate electricity, typically through the process of nuclear fission.

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Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, typically focusing on balancing environmental, economic, and social goals.

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