During the Most Recent Year,Evans Company Had Operating Income of $90,000

question 62

Multiple Choice

During the most recent year,Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing.The fixed manufacturing overhead application rate was $6 per unit.There were no beginning inventories.If 22,000 units were produced last year,what were the sales for last year?

• A) 15,000 units.
• B) 21,000 units.
• C) 23,000 units.
• D) 28,000 units.

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Definitions:

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.

Independent Contractor

An individual or entity contracted to perform work for—or provide services to—another entity as a non-employee, thereby offering flexibility and operational advantages for the hiring entity.

Journal Entry

A record in accounting that represents the debit and credit sides of a transaction, reflecting changes in account balances.

Invoice

A document issued by a seller to a buyer that lists goods or services provided, their prices, and the total amount owed.