Answer:
Instructions are listed below
Step-by-step explanation:
Giving the following information:
Foxtrot reported $65,000 of income for the year by using absorption costing.
The company had no beginning inventory.
Production of 20,000 units.
Sales of 18,000 units.
Variable manufacturing costs= $20 per unit.
Fixed manufacturing overhead was $100,000.
In absorption costing the fixed cost is distributed in all the units produced. We need to find sales revenue.
Absorption costing:
Cost per unit= $1000000/20000 + $20= $25
Sales revenue= Total cost + income= 25*18000+65000= $515000
Sales revenue 515000
- cost of goods sold 450000
income= 65000
Variable cost:
Sales revenue= 515000
- cost of goods sold= (18000*20)= 360000
- fixed cost= 100000
income= $55000