A manufacturer reports the following information below for its first three years in operation.
Year 1 Year 2 Year 3
Income under variable costing $76,000 $109,000 $115,000
Beginning inventory (units) 0 800 500
Ending inventory (units) 800 500 0
Fixed manufacturing overhead per unit $8.00 $8.00 $8.00
Income for year 3 using absorption costing is:
a. $109,000
b. $117,000
c. $106,600
d. $115,000
e. $111,000
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A manufacturer reports the following information below for its first three years in operation.
Year...
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