For the Most Recent Year,Atlantic Company's Operating Income Computed Using

question 14

Multiple Choice

For the most recent year,Atlantic Company's operating income computed using the absorption costing method was $7,400,and its operating income computed using the variable costing method was $10,100.The company's unit product cost was $17 under variable costing and $22 under absorption costing.Atlantic produces the same number of units each year.What must have been the beginning inventory if the ending inventory consisted of 1,460 units?

• A) 920 units.
• B) 1,460 units.
• C) 2,000 units.
• D) 12,700 units.

---

Definitions:

Cash Balance

The amount of cash a company or individual has available after all transactions have been accounted for.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer.

First National Bank

A commonly used name for banks in various countries, typically indicating it was the first bank chartered under national laws.

Deposit Slip

A document that accompanies bank deposits, detailing the amount of cash and/or checks being deposited.