In a period where opening inventories were 15,000 units and closing inventories were 20,000 units, a firm had a profit of $130,000 using absorption costing. If the fixed overhead absorption rate was $8 per unit, the profit using marginal costing would be which of the following?
A、$90,000
B、$130,000
C、$170,000
D、Impossible to calculate without more information
A、$90,000
B、$130,000
C、$170,000
D、Impossible to calculate without more information
【参考答案及解析】
Difference in profit = change in inventory level x fixed overhead per unit=(15,000 - 20,000) x $8 =$40,000 The inventory level increased during the period therefore the absorption costing profit is higher than the marginal costing profit. Marginal costing profit = $130,000 - $40,000 = $90,000 Working $ Overhead absorbed (5,800 x $5) 29,000 Overhead incurred 27,400 Over-absorbed overhead 1,600
Difference in profit = change in inventory level x fixed overhead per unit=(15,000 - 20,000) x $8 =$40,000 The inventory level increased during the period therefore the absorption costing profit is higher than the marginal costing profit. Marginal costing profit = $130,000 - $40,000 = $90,000 Working $ Overhead absorbed (5,800 x $5) 29,000 Overhead incurred 27,400 Over-absorbed overhead 1,600