A manufacturer reports the following information below for its first three years in operation. ? Year 1 Year 2 Year 3Income under variable costing$76,000 $109,000 $115,000Beginning inventory (units) 0 800 500Ending inventory (units) 800 500 0Fixed manufacturing overhead per unit$8.00 $8.00 $8.00Income for year 3 using absorption costing is:
A. $111,000.
B. $106,600.
C. $109,000.
D. $115,000.
E. $117,000.
Answer: A
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