Watson,Inc The Beginning Finished Goods Inventory Costs Were $3,800 Under Absorption

question 37

Multiple Choice

Watson,Inc.has collected the following data for the current year: $$\begin{array} { | l | r |l| } \hline \text { Beginning Finished Goods Inventory } & 50& \text { units } \\\hline \text { Units produced } & 560 &\text { units } \\\hline \text { Units sold } & 610 &\text { units } \\\hline \text { Sales price } & \$ 180 &\text { per unit } \\\hline \text { Direct materials } & \$ 27& \text { per unit } \\\hline \text { Direct labor } & \$ 16& \text { per unit } \\\hline \text { Variable manufacturing overhead } & \$ 15 &\text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 16,900 &\text { per year } \\\hline \text { Variable selling and administrative costs } & \$ 7 &\text { per unit } \\\hline \text { Fixed selling and administrative costs } & \$ 13,500& \text { per year } \\\hline\end{array}$$ The beginning Finished Goods Inventory costs were $3,800 under absorption costing and $2,000 under variable costing.
What is the operating income using absorption costing? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

• A)$56,619
• B)$38,849
• C)$52,349
• D)$3,800

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Definitions:

Causal Attributions

The process by which individuals infer the causes of their own and others' behaviors, actions, and events.

Distinctiveness

The quality of being uniquely different from others in some respect, often used to describe features that distinguish one person, group, or thing from another.

Causal Hypothesis

A statement predicting a precise relationship between two or more variables, where changes in one variable cause changes in another.

Initial Causal Hypothesis

The original assumption or proposition about the cause-and-effect relationship between variables, awaiting testing or verification.