Answer:
$270,600
Explanation:
net income of based on variable costing = $230,000
beginning and ending inventories were 7,800 units and 13,600 units
fixed overhead per unit = $7
to calculate net income using absorption costing:
= net income + [(ending inv. - beginning inv.) x fixed overhead per unit]
= $230,000 + [(13,600 - 7,800) x $7]
= $230,000 + $40,600 = $270,600
Under variable costing, beginning and ending inventories are valued only using variable costs, while absorption costing values all inventories using full production costs.
