Question
A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Income under variable costing $
A manufacturer reports the following information below for its first three years in operation.
| Year 1 | Year 2 | Year 3 | ||||||
| Income under variable costing | $ | 76,000 | $ | 109,000 | $ | 115,000 | ||
| Beginning inventory (units) | 0 | 800 | 500 | |||||
| Ending inventory (units) | 800 | 500 | 0 | |||||
| Fixed manufacturing overhead per unit | $ | 8.00 | $ | 8.00 | $ | 8.00 | ||
Income for year 3 using absorption costing is:
Multiple Choice
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$109,000.
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$117,000.
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$106,600.
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$115,000.
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$111,000.
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9 Keys To Successful Audits
Authors: Denise Robitaille
1st Edition
1932828680, 978-1932828689
