TB MC 19-95

Belle Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.

Units Produced this year	20,000
units sold this year	12,000
Direct Materials	$12 per unit
Direct Labor	$14 per unit
Variable overhead	$3 per unit
Fixed Overhead	$90,000

Belle Company's product is sold for $59 per unit. Variable selling and administrative expense is $2 per unit and fixed selling and administrative is $200,000 per year. Compute the net income under absorption costing.