Trainor Incorporated, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 112 Units in beginning inventory 0 Units produced 4,900 Units sold 4,500 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 19 $ 45 $ 6 $ 9 Fixed costs: Fixed manufacturing overhead $ 1,17,600 Fixed selling and administrative $ 22,500 What is the net operating income for the month under absorption costing? A. ($19,600) B. $9,600 C. $8,400 D. $18,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trainor Incorporated, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$ 112
Units in beginning inventory
0
Units produced
4,900
Units sold
4,500
Units in ending inventory
400
Variable costs per unit:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
$ 19
$ 45
$ 6
$ 9
Fixed costs:
Fixed manufacturing overhead
$ 1,17,600
Fixed selling and administrative
$ 22,500
What is the net operating income for the month under absorption
costing?
A. ($19,600)
B. $9,600
C. $8,400
D. $18,000
Transcribed Image Text:Trainor Incorporated, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 112 Units in beginning inventory 0 Units produced 4,900 Units sold 4,500 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 19 $ 45 $ 6 $ 9 Fixed costs: Fixed manufacturing overhead $ 1,17,600 Fixed selling and administrative $ 22,500 What is the net operating income for the month under absorption costing? A. ($19,600) B. $9,600 C. $8,400 D. $18,000
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