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Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 111 Units in
Elison Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price | $ | 111 | |
Units in beginning inventory | 0 | ||
Units produced | 7,500 | ||
Units sold | 7,200 | ||
Units in ending inventory | 300 | ||
Variable costs per unit: | ||
Direct materials | $ | 24 |
Direct labor | $ | 34 |
Variable manufacturing overhead | $ | 1 |
Variable selling and administrative expense | $ | 5 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 217,500 |
Fixed selling and administrative expense | $ | 115,200 |
What is the net operating income for the month under absorption costing?
$8,700 | ||
$5,700 | ||
$14,400 | ||
$(12,000) |
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