Answer:
424000
Explanation:
Answer: Net income under absorption costing = $424000
Explanation:
Given that,
Direct materials =$4 per unit
Direct labor = $2 per unit
Variable overhead = $3 per unit
Fixed overhead = $256,000
company produced = 32,000 units
company sold = 26,500 units
inventory at year-end = 5,500 units
Income under variable costing = $380,000
Total variable cost = (Direct materials+Direct labor +Variable overhead) × units produced
= (4+2+3) × 32000
=$288000
Per unit fixed cost =
=
= $8
Fixed cost on inventory = inventory at year-end × Per unit fixed cost
= 5500 × 8
= 44000
Net income under absorption costing = Income under variable costing + Fixed cost on inventory
= 380000 + 44000
=$424000
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