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 this year?
A) $80,000
B) $100,500
C) $108,000
D) $112,200

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 this year?
A) $80,000 
B) $100,500 
C) $108,000 
D) $112,200

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 × 1,300 units - $7 per unit × 3,600 units = −$16,100
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Norenberg Corporation Manufactures a Single Product