Answer (B) is correct . The difference is caused by the capitalization of some of the fixed manufacturing overhead. When inventories increase during the period, the absorption ending finished goods =35+130-125=40, the difference=(40-35)*5(fix manufacturing overhead)
Answer (A) is incorrect because The difference between absorption costing and variable costing income was $25,000.
Answer (C) is incorrect because The difference between absorption costing and variable costing income was $25,000.
Answer (D) is incorrect because The difference between absorption costing and variable costing income was $25,000.
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The difference between Valyn Corporation’s operating income calculated on the absorption costing basis and calculated on the variable costing basis was
