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A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 Variable costing income $ 89,000
A manufacturer reports the following information below for its first three years in operation.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Variable costing income | $ 89,000 | $ 122,000 | $ 128,000 |
| Beginning finished goods inventory (units) | 0 | 930 | 565 |
| Ending finished goods inventory (units) | 930 | 565 | 0 |
| Fixed overhead per unit | $ 14.00 | $ 14.00 | $ 14.00 |
Income for year 2 using absorption costing is:
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald W. Hilton
11th edition
125956956X, 978-1259569562
