Essay
The following data are available for Ruggles Company for the year ended September 30, 2011.
Manufacturing costs incurred:
Nonmanufacturing costs incurred:
Required:
a. Determine operating income using the variable-costing approach.
b. Determine operating income using the absorption-costing approach.
c. Explain why operating income is not the same under the two approaches.
Correct Answer:
Verified
a. 24,000 × $50 = $1,200,000 sales
b. ...View Answer
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Correct Answer:
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b. ...View Answer
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