Figure 2-2.Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:
In addition, direct labor costs of $30,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.
-Refer to Figure 2-2. What was Lonborg's operating income <loss> for the year?

Question

Figure 2-2.Lonborg Co. had the following beginning and ending inventory balances for the year ended December 31, 2011:

In addition, direct labor costs of $30,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.
-Refer to Figure 2-2. What was Lonborg's operating income <loss> for the year?

Quizplus · Accepted Answer

Operating income or loss is calculated by subtracting operating expenses from gross profit. Without the specific figures from Figure 2-2, it's impossible to calculate or verify the correct answer. However, based on the question, the correct answer is indicated as a loss of $3,500, which suggests that operating expenses exceeded gross profits by this amount.