Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:
In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What was Lonborg's operating income <loss> for the year?

Question

Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:

In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What was Lonborg's operating income <loss> for the year?

Quizplus · Accepted Answer

The Answer of Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011: In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit. Refer to Figure 2-2.What was Lonborg's operating income for the year? A)$18,500 B)$125,000 C)$<3,500> D)$5,500