Explore BrainMass

Explore BrainMass

    Absorption and Variable costing for AFN Products

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please review my computations. I need help with part D, please.

    AFN produces plastic that is used for injection molding applications such as gears for small motors. In 2002, the first year of operations, AFN produced 4,000 tons of plastic and sold 3,000 tons. In 2003, the productin and sales results were exactly reversed. In each year, selling price per ton was $2,000, variable manufacturing costs were 15% of teh sales price of units produced, variable seling expenses were 10% of the selling price of units sold, fixed manufacturing costs were $2,400,000, an dfixed administrative expenses were $600,000...

    (See attached file for full problem description)

    © BrainMass Inc. brainmass.com June 3, 2020, 6:06 pm ad1c9bdddf


    Solution Summary

    The solution explains how the prepare income statements using variable costing and absorption costing and the difference between them