For 2019, Kim, Inc., had production of 200,000 units and sales of 160,000 units. Selling price is $6 per unit. There was no beginning inventory. Other information for the year included: Direct manufacturing labor$228,000Variable manufacturing overhead120,000Direct materials180,000Variable selling expenses144,000Fixed administrative expenses96,000Fixed manufacturing overhead216,000 Compute net income under absorption costing.

Under Absorption costing, product cost include direct material, direct labor and variable…

Answered: s no beginning inventory. Other…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For 2019, Kim, Inc., had production of 200,000 units and sales of 160,000 units. Selling price is $6 per unit. There was no beginning inventory. Other information for the year included:

Direct manufacturing labor	$228,000
Variable manufacturing overhead	120,000
Direct materials	180,000
Variable selling expenses	144,000
Fixed administrative expenses	96,000
Fixed manufacturing overhead	216,000

Compute net income under absorption costing.

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