Business

Damien Griffin

29 March, 02:10

Last year, Stephen Company had 20,000 units in its ending inventory.

During the year, Stephen's variable production costs were $12 per

unit. The fixed manufacturing overhead cost was $8 per unit in the

beginning inventory. The company's net income for the year was $9,600

higher under variable costing than it was under absorption costing.

Given these facts, the number of units of product in the beginning

inventory last year must have been:

a. 21,200.

b. 19,200.

c. 18,800.

d. 19,520