A manufacturer reports the following information below for its first three years in operation. $\begin{array} { l r r r }
& & & \
& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\text { Income under variable costing } & \$ 76,000 & \$ 109,000 & \$ 115,000 \
\text { Beginning inventory (units) } & 0 & 800 & 500 \
\text { Ending inventory (units) } & 800 & 500 & 0 \
\text { Fixed manufacturing overhead per unit } & \$ 8.00 & \$ 8.00 & \$ 8.00 \
\hline
\end{array}$
-
Income for year 1 using absorption costing is:
A) $76,000.
B) $88,800.
C) $111,000.
D) $106,600.
E) $82,400.

Question

A manufacturer reports the following information below for its first three years in operation. $\begin{array} { l r r r } 
& & & \
& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\text { Income under variable costing } & \$ 76,000 & \$ 109,000 & \$ 115,000 \
\text { Beginning inventory (units) } & 0 & 800 & 500 \
\text { Ending inventory (units) } & 800 & 500 & 0 \
\text { Fixed manufacturing overhead per unit } & \$ 8.00 & \$ 8.00 & \$ 8.00 \
\hline
\end{array}$
-
Income for year 1 using absorption costing is:
A) $76,000.
B) $88,800.
C) $111,000.
D) $106,600.
E) $82,400.

Quizplus · Accepted Answer

The Answer of A manufacturer reports the following information below for its first three years in operation. $\begin{array} { l r r r } 
& & & \
& \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\text { Income under variable costing } & \$ 76,000 & \$ 109,000 & \$ 115,000 \
\text { Beginning inventory (units) } & 0 & 800 & 500 \
\text { Ending inventory (units) } & 800 & 500 & 0 \
\text { Fixed manufacturing overhead per unit } & \$ 8.00 & \$ 8.00 & \$ 8.00 \
\hline
\end{array}$
-
Income for year 1 using absorption costing is:
A) $76,000.
B) $88,800.
C) $111,000.
D) $106,600.
E) $82,400.

A Manufacturer Reports the Following Information Below for Its First