Absorption Costing Explained, With Pros and Cons and Example
Absorption Costing Explained, With Pros and Cons and Example
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Dion Company reports the absorption costing income statement below for May.The company began the month with no finished goods inventory.Dion produced 21,400 units,and 2,700 units remain in ending finished goods inventory for May.Fixed overhead was 53,500. Variable selling and administration expenses were37,000 and fixed selling and administrative expenses were 17,500.Sales 18,700 units Cost of goods sold Gross profit Selling and administrative expenses Income374,000 295,000 79,000 54,500 24,500P
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