A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 $ 82,000 Income under variable costing Beginning inventory (units) Ending inventory (units) Fixed manufacturing overhead per unit 115,000 121,000 860 530 860 530 $ 7.00 $ 7.00 $ 7.00 Income for year 3 using absorption costing is:
A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 $ 82,000 Income under variable costing Beginning inventory (units) Ending inventory (units) Fixed manufacturing overhead per unit 115,000 121,000 860 530 860 530 $ 7.00 $ 7.00 $ 7.00 Income for year 3 using absorption costing is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturer reports the following information below for its first three years in operation.
| Year 1 | Year 2 | Year 3 | ||||||
| Income under variable costing | $ | 82,000 | 115,000 | 121,000 | ||||
| Beginning inventory (units) | 0 | 860 | 530 | |||||
| Ending inventory (units) | 860 | 530 | 0 | |||||
| Fixed manufacturing |
$ | 7.00 | $ | 7.00 | $ | 7.00 | ||
Income for year 3 using absorption costing is:
Transcribed Image Text:A manufacturer reports the following information below for its first three years in operation.
Year 1
Year 2
Year 3
Income under variable costing
Beginning inventory (units)
Ending inventory (units)
Fixed manufacturing overhead per unit
$ 82,000
115,000
121,000
860
530
860
530
$
7.00 $
7.00 $
7.00
Income for year 3 using absorption costing is:
Transcribed Image Text:Income for year 3 using absorption costing is:
Multiple Choice
$115,000.
$122,420.
$112,690.
$121,000.
$117,290.
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