Elliot Company, Which Has Only One Product, Has Provided the Following

question 43

Multiple Choice

Elliot Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 112 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 4,900 \\\hline \text { Units sold } & 4,500 \\\hline \text { Units in ending inventory } & 400 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 19 \\\hline \text { Direct labour } & \$ 45 \\\hline \text { Variable manufacturing overhead } & \$ 6 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 117,600 \\\hline \text { Fixed selling and administrative } & \$ 22,500 \\\hline\end{array}$

-What was the operating income (loss) for the month under absorption costing?

• A) ($19,600).
• B) $8,400.
• C) $9,600.
• D) $18,000.

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Definitions:

Monocytes

A type of white blood cell that plays a key role in the immune response, capable of differentiating into macrophages and dendritic cells.

Macrophages

A type of white blood cell part of the immune system, involved in the detection, phagocytosis, and destruction of bacteria and other harmful organisms.

Tumor Necrosis Factor (TNF)

A cell signaling protein (cytokine) involved in systemic inflammation and is part of the immune system's response to infections and diseases.

Inflammatory Response

The body's biological reaction to harmful stimuli, infections, or injuries, aimed at eliminating the cause and restoring tissue health.