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When It Rains, It Pours, LLC is a manufacturer of umbrellas. During the previous period, $16,500 of direct materials were requisitioned and $15,000 of direct

When It Rains, It Pours, LLC is a manufacturer of umbrellas. During the previous period, $16,500 of direct materials were requisitioned and $15,000 of direct labor costs were incurred in the companys manufacturing operations. The company uses actual costing to account for manufacturing overhead. The actual manufacturing overhead costs incurred totaled $6,400.

The companys beginning work in process inventory equaled $20,000. By the end of the period, this amount had decreased by $2,500. There was a net increase in finished goods inventory during the period of $750.

Give sales revenue of $225,000 and operating expenses of $41,000, what was the company's operating income for the period?

A.

$164,350

B.

$144,350

C.

$129,350

D.

$147,850

E.

$185,300

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