Brush Industries reports the following information for May: Calculate the operating income for May under absorption costing.
A) $650,000
B) $325,000
C) $525,000
D) $550,000
E) $350,000

Question

Brush Industries reports the following information for May:  Calculate the operating income for May under absorption costing.
A) $650,000 
B) $325,000 
C) $525,000 
D) $550,000 
E) $350,000

Quizplus · Accepted Answer

Sales $900,000 − Cost of goods sold $350,000 = Gross margin $550,000 − Selling and administrative costs $225,000 = $325,000

Brush Industries Reports the Following Information for May: Calculate