If all units produced during March are sold, and there is no change in the number of units in the beginning finished goods inventory, then:
A)income determined with absorption costing will equal income determined with direct costing.
B)ending work in process inventory will increase with absorption costing.
C)income determined with absorption costing will be higher than income determined with direct costing.
D)ending finished goods inventory will increase.

Question

Quizplus · Accepted Answer

When all units produced are sold and there is no change in beginning finished goods inventory, both absorption and direct costing will result in the same income because there are no inventory changes to affect the cost allocation.

If All Units Produced During March Are Sold, and There