The following information is used for question 6 - 8. Craig Beach Vacations (CBV) manufacturers sand-resistant suitcases for the frequent beachgoers. They reported the following inventory values on their balance sheet: January 1 December 31 Direct materials $120,000 $162,000 Work in process $548,000 $420,000 Finished goods $367,000 $513,000 During the production of 1,800 units, CBV purchased $72,000 in direct materials purchases. They also incurred $33,000 in overhead expenses, $22,400 in administrative expenses, and 1,200 hours of labor. All laborers are paid at a wage rate of $12.00 per hour. CBV sells all their products at an average price of $80 per unit. Using the information provided, what is the operating income? Please round your answer to the nearest whole dollar. Do not include the "$" symbol.
The following information is used for question 6 - 8. Craig Beach Vacations (CBV) manufacturers sand-resistant suitcases for the frequent beachgoers. They reported the following inventory values on their balance sheet: January 1 December 31 Direct materials $120,000 $162,000 Work in process $548,000 $420,000 Finished goods $367,000 $513,000 During the production of 1,800 units, CBV purchased $72,000 in direct materials purchases. They also incurred $33,000 in overhead expenses, $22,400 in administrative expenses, and 1,200 hours of labor. All laborers are paid at a wage rate of $12.00 per hour. CBV sells all their products at an average price of $80 per unit. Using the information provided, what is the operating income? Please round your answer to the nearest whole dollar. Do not include the "$" symbol.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is used for question 6 - 8.
Craig Beach Vacations (CBV) manufacturers sand-resistant suitcases for the frequent beachgoers. They reported the following inventory values on their balance sheet:
| January 1 | December 31 | |
| Direct materials | $120,000 | $162,000 |
| Work in process | $548,000 | $420,000 |
| Finished goods | $367,000 | $513,000 |
During the production of 1,800 units, CBV purchased $72,000 in direct materials purchases. They also incurred $33,000 in overhead expenses, $22,400 in administrative expenses, and 1,200 hours of labor. All laborers are paid at a wage rate of $12.00 per hour. CBV sells all their products at an average price of $80 per unit.
Using the information provided, what is the operating income? Please round your answer to the nearest whole dollar. Do not include the "$" symbol.
Incorrect answer: 44,200
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