Last Year,Rasband Corporation's Variable Costing Net Operating Income Was $57,000

question 239

Essay

Last year,Rasband Corporation's variable costing net operating income was $57,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $30,000.
Required:
Determine the absorption costing net operating income last year.Show your work!

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Definitions:

Revenue Recognition

This is the accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.

Sale

The act of selling goods or services in exchange for money or other compensation.

Revenue

The total income generated by a company from its business activities, before any expenses are deducted.

Construction Contracts

Agreements between a contractor and client for the provision of construction services, detailing the project's scope, terms, and conditions.