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

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

Step-by-step explanation:

Variable cost net income
`=\$917,000`

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

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

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