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homilate completion.. Return to question QS 19-14 Converting variable costing income to absorption costing income LO P3 Hong Co. had net income of $386,100 under
homilate completion.. Return to question QS 19-14 Converting variable costing income to absorption costing income LO P3 Hong Co. had net income of $386,100 under variable costing. Beginning and ending inventories were 2,600 units and 3,900 units, respectively. Fixed overhead cost was $4.00 per unit for both the beginning and ending inventory. What is net income under absorption costing? Answer is complete but not entirely correct. When the number of units produced exceeds the number of units sold, net income under absorption costing will be: Higher than income using variable costing The difference in income is equal to: The number of units added to inventory multiplied by the variable overhead per unit 386,100 1,300 Net income under variable costing Change in number of units in inventory Variable selling expense per Multiplied by unit: X $ 4.00 5,200 380.900 X Net income under absorption costing e 91
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