Romasanta Corporation manufactures a single product.The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income this year?
A)$65, 500
B)$51, 700
C)$61, 900
D)$53, 300

Question

Romasanta Corporation manufactures a single product.The following data pertain to the company's operations over the last two years:  What was the absorption costing net operating income this year?
A)$65, 500 
B)$51, 700 
C)$61, 900 
D)$53, 300

Quizplus · Accepted Answer

Manufacturing overhead deferred in (released from)inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory
= $3 per unit × 3, 500 units - $3 per unit × 1, 200 units = $6, 900
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Romasanta Corporation Manufactures a Single Product