Use the following information for the next 4 questions.
Bella, Inc. has operated for 2 years. During that time it produced 1,000 units in year 1 and 800 in year 2, while sales were 800 units in year 1 and 900 in year 2. Variable production costs were $8 per unit during both years. The company uses last-in, first-out (LIFO) for inventory costing. The absorption costing income statements for these 2 years were:
-Operating income for year 1 using variable costing would be
A) $1,600
B) $(2,800)
C) $2,200
D) $400

Question

Use the following information for the next 4 questions.
Bella, Inc. has operated for 2 years. During that time it produced 1,000 units in year 1 and 800 in year 2, while sales were 800 units in year 1 and 900 in year 2. Variable production costs were $8 per unit during both years. The company uses last-in, first-out (LIFO) for inventory costing. The absorption costing income statements for these 2 years were: 
-Operating income for year 1 using variable costing would be
A) $1,600 
B) $(2,800) 
C) $2,200 
D) $400

Quizplus · Accepted Answer

The Answer of Use the following information for the next 4 questions.
Bella, Inc. has operated for 2 years. During that time it produced 1,000 units in year 1 and 800 in year 2, while sales were 800 units in year 1 and 900 in year 2. Variable production costs were $8 per unit during both years. The company uses last-in, first-out (LIFO) for inventory costing. The absorption costing income statements for these 2 years were: 
-Operating income for year 1 using variable costing would be
A) $1,600 
B) $(2,800) 
C) $2,200 
D) $400

Use the Following Information for the Next 4 Questions