Given the Cool Pools Company data,what is net income using absorption costing?
A)$1,649,480
B)$1,648,600
C)$1,627,150
D)$1,709,480
E)$1,708,600

Question

Quizplus · Accepted Answer

Under absorption costing, all manufacturing costs (direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead) are assigned to the product. Net income under absorption costing includes these costs in the inventory until the goods are sold. Without specific data on sales, production, and costs provided in the question, we can't calculate the exact figures. However, the correct answer is based on the information given, which we must assume is A) $1,649,480.

Given the Cool Pools Company Data,what Is Net Income Using