Ruggles Company Has Provided the Following Data for the Year

Essay

Ruggles Company has provided the following data for the year ended 30 September 2018.
$\begin{array}{lr}\text { Sales: } & 24000 \text { units at } \$ 50 \text { each } \\\text { Expected and actual production: } & 30000 \text { units } \\\text { Manufacturing costs incurred: } &\\\text { Variable: } & \$ 525000 \\\text { Fixed: } & \$ 372000\\\text { Nonmanufacturing costs incurred: }\\\text { Variable: } & \$ 144800 \\\text { Fixed: } & \$ 77400 \\\text { Beginning inventories: } & \text { none }\end{array}$
Required:
a.Determine operating profit using the variable-costing approach.
b.Determine operating profit using the absorption-costing approach.
c.Explain why operating profit is not the same under the two approaches.
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