Peterson Company's records for the year ended December 31 show that no finished goods inventory existed at
Question:
Under the absorption costing method, Peterson's operating income for the year is
A. $307,000
B. $374,500
C. $217,000
D. $352,000
Transcribed Image Text:
Net sales $1,400,000 Manufacturing costs:Variable 630,000 Fixed 315,000 Operating expenses: Variable 98,000 Fixed 140,000 Units manufactured 70,000 Units sold 60,000
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