A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3
Variable costing income 140,000 146,400 143,950
Beginning finished goods inventory (units) 0 2,200 1,700
Ending finished goods inventory (units) 2,200 1,700 1,800
Fixed manufacturing overhead per unit 1.20 1.20 1.20
Compute income for each of the three years using absorption costing.
Year 1 Year 2 Year 3
Absorption costing income

Year 1

Fixed Overhead in ending inventory = (2,200 * $1.20) = $2,640

Year 2

Fixed Overhead in ending inventory = (1,700 * $1.20) = $2,040

Fixed overhead in beginning inventory = (2,200 * $1.20) = $2,640

Year 3

Fixed Overhead in ending inventory = (1,800 * $1.20) = $2,160

Fixed overhead in beginning inventory = (1,700 * $1.20) = $2,040

                     Absorption costing income

Particulars                                                    Year 1         Year 2       Year 3

Variable costing income                           $140,000     $146,400   $143,950

Fixed Overhead in ending inventory        $2,640        $2,040       $2,160

Fixed overhead in beginning inventory    $0               ($2,640)     ($2,040)

Absorption costing income                      $142,640   $145,800  $144,070

I visited Whole Foods page and found the following values:

Highest QualityCustomer SatisfactionTeam member Grrowth and HapinessWin win partnerships with suppliersProfit and prosperity creationCare about community and environmentHow do they relate to the products the company sells?

The company sell organic food in markets that aim to improve people nutrition. The company is involved with different foundations.

Did anything surprise you about the company's values?

Not really, whole foods have a strong and clear communication of what the company is about and I have expeienced those values when I go shopping there.