A Company That Produces a Single Product Had a Net

question 99

Multiple Choice

A company that produces a single product had a net operating income of $82,000 using variable costing and a net operating income of $108,790 using absorption costing. Total fixed manufacturing overhead was $54,570 and production was 10,700 units. This year was the first year of operations. Between the beginning and the end of the year, the inventory level:

• A) decreased by 26,790 units
• B) increased by 26,790 units
• C) decreased by 5,253 units
• D) increased by 5,253 units

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