What was the income using absorption costing


Swifton Company produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $3.00 per unit, what was the income using absorption costing?

a) $15,000

b) $25,000

c) $40,000

d) $55,000

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Accounting Basics: What was the income using absorption costing
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