Problem
A manufacturer reports the information below for three recent years.
|
Year 1
|
Year 2
|
Year 3
|
|
Variable costing income
|
140,000
|
146,400
|
143,950
|
|
Beginning finished goods inventory (units)
|
0
|
2,200
|
1,700
|
|
Ending finished goods inventory (units)
|
2,200
|
1,700
|
1,800
|
|
Fixed manufacturing overhead per unit
|
1.20
|
1.20
|
1.20
|
Compute income for each of the three years using absorption costing.