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A manufacturer reports the following Information for the past three years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units)
A manufacturer reports the following Information for the past three years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed overhead (FOH) per unit Year 1 $ 110,000 1,200 $ 2.50 Year 2 $ 114,400 Year 3 $ 118,950 1,200 700 $ 2.50 700 800 $ 2.50 Compute Income for each of the three years using absorption costing. Hint: Fixed overhead in Inventory equals the FOH per unit x Units In Inventory. (Amounts to be deducted should be Indicated with a minus sign.) Variable costing income Absorption costing income Year 1 Year 2 Year 3
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