Solution-Compute osawa operating income using variable

Compute osawa operating income using variable costing

Reference no: EM132969753

Question - Osawa, Inc., planned and actually manufactured 200,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $20 per unit produced. Variable operating (nonmanufacturing) cost was $10 per unit sold. Planned and actual fixed manufacturing costs were $600,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $400,000. Osawa sold 120,000 units of product at $40 per unit.

Required -

a. Compute Osawa's 2020 operating income using absorption costing.

b. Compute Osawa's 2020 operating income using variable costing.

Reference no: EM132969753

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Compute osawa operating income using variable costing

Reference no: EM132969753

Reference no: EM132969753

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