Homework Answers
ANSWER:
The net income under absorption costing is as below:
| Particulars | Amount $ | Amount $ |
| Sales (6000*$17) | 102000 | |
| Less: Cost of goods sold | ||
| Cost of goods manufactured (8000*$9) | 72000 | |
| Less: Closing inventory (2000*$9) | 18000 | 54000 |
| Gross profit | 48,000 | |
| Less Selling & Administrative cost | 10000 | |
| Net Income | 38,000 |
Option C is correct
Note: Manufacturing expenses per uni = $ 6 + ($24000/8000)
= $6 + $3 = $9
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