WebFlicks Is an Online DVD Company That Produces Its Own

Multiple Choice

WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Variable costs: }\\\text { Product royalty fees } & \$ 3.30 \text { per DVD } \\\text { DVD production } & \$ 1.20 \text { per DVD } \\\text { Selling and admin costs } & \$ 0.80 \text { per DVD }\\\text { Fixed Costs: }\\\text { Production } & \$ 128,000 \text { per month } \\\text { Selling and administration } & \$ 130,000 \text { per month }\end{array}$ During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is net income per month under full costing?

A) $143,600
B) $130,640
C) $130,800
D) None of these answer choices are correct.