During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $290,000. The company produced 29,000 units, and sold 19,500 units, leaving 9,500 units in inventory at year-end. Income calculated under variable costing is determined to be $365,000. How much income is reported under absorption costing?

Multiple Choice

• $365,000

• $460,000

• $329,000

• $655,000

• $270,000

  Jeter Corporation had net income of $229,000 based on variable costing. Beginning and ending inventories were 7,700 units and 13,400 units, respectively. Assume the fixed overhead per unit was $4 for both the beginning and ending inventory. What is net income under absorption costing?

  Multiple Choice

• $313,400

• $229,000

• $274,600

• $251,800

• $282,600