Helmers Corporation Manufactures a Single Product

question 65

Multiple Choice

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $103,000. Last year, $32,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $12,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing.What was the absorption costing net operating income last year?

• A) $106,000
• B) $86,000
• C) $54,000
• D) $118,000

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Definitions:

Preoperational

A stage in Jean Piaget’s theory of cognitive development during which children from about 2 to 7 years old develop memory and imagination, but are not yet able to perform operations (logical reasoning tasks).

Sensorimotor

A developmental stage in early childhood where learning occurs through interacting with the environment using basic motor and sensory skills.

Formal Operational

Formal operational is a stage in Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically, typically developing during adolescence.

Postoperational

A stage in Jean Piaget's theory of cognitive development where children ages 7 to 11 start to use logic and operational thinking but are not yet able to handle abstract reasoning.