Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: What was the absorption costing net operating income last year?
A) $113,800
B) $88,600
C) $94,400
D) $76,700

Question

Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:  What was the absorption costing net operating income last year?
A) $113,800 
B) $88,600 
C) $94,400 
D) $76,700

Quizplus · Accepted Answer

Manufacturing overhead deferred in (released from) inventory = Fixed manufacturing overhead in ending inventory - Fixed manufacturing overhead in beginning inventory
= $7 per unit × 3,600 units - $0 = $25,200
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Norenberg Corporation Manufactures a Single Product