During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per unit, Direct labor, $3 per unit, Variable overhead, $4 per unit, and Fixed overhead, $290,000. The company produced 29,000 units, and sold 19,500 units, leaving 9,500 units in inventory at year-end. Income calculated under variable costing is determined to be $365,000. How much income is reported under absorption costing

$460,000

Explanation:

The computation of the income reported under absorption costing is shown below:

Fixed overhead under absorption costing is

= ($290,000 ÷ 29000 units)

= $10  per unit

Units in ending Inventory is

= 29,000 units - 19,500 units

= 9,500 units

Now the cost of ending units is

= 9,500 units × $10 per unit

= $95,000

And, finally Income under absorption costing

= Income under variable costing + ending inventory

= $365,000 + $95,000

= $460,000

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answer; dogs;