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
 11eaa3fe_32c6_c7ea_908b_bd0a733f9bf9_TB2461_00

Romasanta Corporation Manufactures a Single Product