Westwood Company Has the Following Information the Current Year:
Eastwood

question 64

Multiple Choice

Westwood Company has the following information the current year:
Eastwood had no beginning inventories.
$\begin{array}{lr}\text { Selling price } & \$ 300 \text { per unit } \\\text { Variable production costs } & \$ 80 \text { per unit produced } \\\text { Variable selling and administrative expenses } & \$ 32 \text { per unit sold } \\\text { Fixed production costs } & \$ 400,000 \\\text { Fixed selling and administrative expenses } & \$ 280,000 \\\text { Units produced } & 20,000 \text { units } \\\text { Units sold } & 16,000 \text { units }\end{array}$
-Refer to the Figure.What is the net income for Westwood using the absorption costing method?

• A)$452,000
• B)$480,000
• C)$600,000
• D)$2,088,000

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Definitions:

Accreditation

The process of validating the credibility and legitimacy of an institution, organization, or program by a recognized authority.

Retail Stores

Physical or online places of business that sell goods or merchandise to the public for personal or household use.

Fireworks

Devices containing combustible chemicals that produce a spectacular explosion when ignited, typically used for entertainment.

Qualify to do Business

The process by which a company meets the legal requirements to operate in a jurisdiction outside of its original incorporation.