Chapter 21, Problem 3CMA

Mill Corporation had the following unit costs for the recent calendar year:

Inventory for Mill’s sole product totaled 6,000 units on January 1 and 5,200 units on December 31. When compared to variable costing income, Mill’s absorption costing income is:

1. a. $2,400 lower.
2. b. $2,400 higher.
3. c. $6,800 lower.
4. d. $6,800 higher.