s Hot Stuff began making hot a

sHot Stuff began making hot and sour soup in August, 2012. The soupsells for $2 for alarge package. Variable production costs are$0.70 per package. Roberta’s Hot Stuff incursmonthly fixedmanufacturing overhead costs of $40,000 and fixed selling andadministrative costof $8,000. On August 31, 2012 ending inventorywas 10,000 soup packages. Assume Roberta’sHot Stuff produced400,000 soup packages in September. Roberta’s Hot Stuff sold406,000 of the soup packages in September. Calculate the Septembernet income using absorption costing.

A. $479,800
B. 479,200
C. 527,800
D. 487,200


Ans. Option B. $479200
Unit product cost:(under absorption costing):
Variable production cost 0.7
Fixed manufacturing overhead (40000/400000) 0.1
Total unit product cost 0.8
Absorptioncosting Income statement
Particulars Amount
Sales (406000*2) 812000
Less: Cost of goods sold:
Opening inventory (10000*0.80) 8000
Add: Cost of goods manufactured (400000*0.8) 320000
Cost of goods available for sale 328000
Less: Ending inventory [(400000+10000-406000)*0.8] -3200 324800
Gross profit 487200
Less: Fixed Selling and Administrative expenses -8000
Net operating income 479200
*Ending inventory for August is equal to thebeginning inventory of September.
*Fixed manufacturing overhead cost per unit =Total fixed manufacturing expenses / No. of unitsproduced
*Ending inventory units = Beginning inventory +Units produced – units sold

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with brilliantassignmenthelp.com
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes