Raymond Company
Raymond Company Reported the Following Units of Production

question 85

Multiple Choice

Raymond Company
Raymond Company reported the following units of production and sales for June and July: $$\begin{array} { l r r } & \text { Units } & \text { Units } \\\text { Month } & \text { Produced } & \text { Sold } \\\text { June } & 100,000 & 90,000 \\\text { July } & 100,000 & 105,000\end{array}$$ Net income using the absorption costing method for June was $40,000; net income using the variable costing method for July was $50,000. Fixed manufacturing costs were $600,000 for each month.
-Refer to Raymond Company. What was the net income for July using the absorption costing method?

• A) $20,000
• B) $40,000
• C) $50,000
• D) $80,000

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Definitions:

Output

The total amount of goods and services produced by an economy over a certain period of time.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Federal Budget Surpluses

Occurs when a government's revenue exceeds its expenditures during a given fiscal period.

Stabilize Economy

Efforts or policies aimed at maintaining economic balance by preventing extreme fluctuations in overall economic activity.