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Managerial Accounting Exercise 6-2

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on 12 March 2015

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Transcript of Managerial Accounting Exercise 6-2

Managerial Accounting
Exercise 6-2

1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
1. Total fixed manufacturing overhead in ending inventory
Exercise 6-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO2]
Refer to the data in Exercise 6-1 for Shastri Bicycle. The absorption costing income statement prepared by company's accountant for last year appears below:
2. Variable Costing Income Statement
2. Prepare an income statement for the year using variable costing. Explain the difference in net operating income between the two costing methods.
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