Westwood Company
Westwood Company Has the Following Information the Current

question 75

Multiple Choice

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

• A) $452,000
• B) $480,000
• C) $642,000
• D) $2,408,000

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Definitions:

Gills

Respiratory organs in certain aquatic organisms, allowing them to extract oxygen from water.

Gases

Substances that are in the state of matter characterized by having neither a defined volume nor shape, expanding to fill their container.

Terrestrial

Terrestrial refers to things relating to the Earth or living or growing on land as opposed to water or air.

Aquatic Environments

Natural water bodies like rivers, lakes, and oceans that are habitats for a wide range of organisms.