Watson,Inc.has collected the following data for the current year:

The beginning Finished Goods Inventory costs were $3,800 under absorption costing and $2,500 under variable costing.
What is the operating income using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )
A)$42,310
B)$26,910
C)$39,410
D)$3,800

Question

Watson,Inc.has collected the following data for the current year:

The beginning Finished Goods Inventory costs were $3,800 under absorption costing and $2,500 under variable costing.
What is the operating income using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )
A)$42,310 
B)$26,910 
C)$39,410 
D)$3,800

Quizplus · Accepted Answer

B)
Absorption costing:
 11ea8a42_4f9e_c089_8b44_6911d11bb8b2_TB5024_00 Selling and administrative costs:
 11ea8a42_4f9e_c08a_8b44_f3c26677d898_TB5024_00 11ea8a42_4f9e_c08b_8b44_0f942d710657_TB5024_00