During the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement would report fixed manufacturing costs as which of the following?
A)Costs of $108,000 as a deduction from gross profit to obtain operating income
B)Overhead of $126,000 as a deduction from sales revenue to obtain gross profit
C)Overhead of $108,000 as a deduction from sales revenue to obtain gross profit
D)Costs of $126,000 as a deduction from sales revenue to obtain contribution margin

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The Answer of During the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement would report fixed manufacturing costs as which of the following?
A)Costs of $108,000 as a deduction from gross profit to obtain operating income
B)Overhead of $126,000 as a deduction from sales revenue to obtain gross profit
C)Overhead of $108,000 as a deduction from sales revenue to obtain gross profit
D)Costs of $126,000 as a deduction from sales revenue to obtain contribution margin

During the Current Period, 14,000 Units Were Produced and 12,000