Answer:
Income using absorption costing =$300.,000
Explanation:
The difference between the profits under the two costing systems is the manner in which inventory is valued.
Absorption costing profit = Variable costing profit +/- difference in profit
<em>Difference in profit = OAR × change in inventory</em>
<em>Change in inventory = opening inventory - closing inventory</em>
<em>Hence for this question,</em>
Opening inventory = 800 +500= 1,300 units
Closing inventory = 800 +500= 1,<u>300 units</u>
change in inventory = <u> 0</u>
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Difference in profit = 8.00 × 0= $0
Income using Absorption costing is equal to =
Income using variable costing - difference in profit
= 176,000 $ + 109,000 + $ 115,000 - $0
=$300,000