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Business, 29.01.2021 01:50 dayi80

Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53
Manufacturing costs:
Variable manufacturing cost per unit produced:
Direct materials $ 13
Direct labor $ 6
Variable manufacturing overhead $ 5
Fixed manufacturing overhead per year $ 63,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold $ 4
Fixed selling and administrative expense per year $ 71,000

Year 1 Year 2
Units in beginning inventory 0 3,000
Units produced 9,000 7,000
Units sold 6,000 7,000
Units in ending inventory 3,000 3,0000

The net operating income (loss) under absorption costing in Year 2 is closest to:
$47,000
$41,000
$146,000
$118,000

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