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 last year?
A)$53,600
B)$50,000
C)$57,200
D)$50,300

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 last year?
A)$53,600 
B)$50,000 
C)$57,200 
D)$50,300

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 × 1,200 units - $0 = $3,600
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Romasanta Corporation Manufactures a Single Product