Question 21

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Green Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5800; and selling and administrative, $130. Fixed costs are: $36000 manufacturing overhead, and $46000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 20182020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under absorption costing for 2019 is

$19400.

$25400.

$28000.

$44800.

Note: i got $19400 when i tried the problem and it was incorrect