Brush Industries reports the following information for May:

Sales	$	990,000
Fixed cost of goods sold		118,000
Variable cost of goods sold		268,000
Fixed selling and administrative costs		118,000
Variable selling and administrative costs		143,000

Calculate the operating income for May under absorption costing.

Multiple Choice

• $722,000

• $343,000

• $579,000

• $604,000

• $386,000

  Jeter Corporation had net income of $219,000 based on variable costing. Beginning and ending inventories were 6,700 units and 11,400 units, respectively. Assume the fixed overhead per unit was $7 for both the beginning and ending inventory. What is net income under absorption costing?

  Multiple Choice

• $298,800

• $251,900

• $284,800

• $345,700

• $219,000