Question

Kluber, Inc. had net income of $917,000 based on variable costing. Beginning and ending inventories were 56,700 units and 55,400 units, respectively. Assume the fixed overhead per unit was $2.10 for both the beginning and ending inventory. What is net income under absorption costing

Answer 1

Answer:

The answer is "$\ 235,410$".

Explanation:

Variable cost net income $=\ 917,000$

Less: Fixed overhead start  $56,700\times \ 2.10=\ 119,070$

Add: Fixed overhead termination  $55,400\times 2.10=\ 11,6340$

Net revenue at cost of absorption $=\ 235,410$