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The subsequent data are available for ruggles company for the year ended September 30,20x5.
sales:24000 units at &50 each
expected and actual production 30000
manufacturing costs incurred:
variable:&525000
fixed:&372000
nonmanufacturing costs incurred:
variable:$144,800
fixed:$77,400
beginning inventories:$77,400
Evaluate operating income using the variable -costing approach.
Evaluate operating income using the absorption-costing approach.
Describe why operating income is not the same under the two approaches.
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