If all units produced during the month of September are sold, and no additional units are sold from 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.
C) income determined with absorption costing will be lower than income determined with direct costing.
D)ending finished goods inventory will decrease.

Question

Quizplus · Accepted Answer

When all units produced are sold, there is no difference in inventory levels, so absorption costing and direct costing will yield the same income.

If All Units Produced During the Month of September Are