Lakeside Manufacturing had a net income of $420,500 based on variable costing. Beginning and ending inventories were 5,200 units and 7,800 units, respectively. Assume the fixed overhead per unit was $4.25 for both the beginning and ending inventory. What is net income under absorption costing?

Lakeside Manufacturing had a net income of $420,500 based on variable costing. Beginning and ending inventories were 5,200 units and 7,800 units, respectively. Assume the fixed overhead per unit was $4.25 for both the beginning and ending inventory. What is net income under absorption costing?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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Given the solution and accounting question

Lakeside Manufacturing had a net income of $420,500 based on variable
costing. Beginning and ending inventories were 5,200 units and 7,800 units,
respectively. Assume the fixed overhead per unit was $4.25 for both the
beginning and ending inventory.
What is net income under absorption costing?

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What is net income under absorption costing?