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, $234,000. The company produced 26,000 units, and sold 18,000 units, leaving 8,000 units in inventory at year-end. Income calculated under variable costing is determined to be $350,000. How much income is reported under absorption costing?

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Calculate the cost of ending inventory under variable costing ... View the full answer