Watson,Inc

question 222

Multiple Choice

Watson,Inc.has collected the following data for the current year:

The beginning Finished Goods Inventory costs were $3,800 under absorption costing and $2,500 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)$42,310
• B)$26,910
• C)$39,410
• D)$3,800

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Definitions:

Interest Due

Interest due refers to the amount of interest payment that is owed but not yet paid by a borrower to a lender by the due date.

Dishonoring a Note

The failure to pay a promissory note when due, which can result in legal action and damage to the borrower's creditworthiness.

Promissory Note

A finance-related instrument embodying a guarantee by one party to pay a certain party a designated sum of money, redeemable upon demand or on a specific forthcoming date.

Promissory Note

A written promise to pay a specified amount of money to a designated person at a specified date or on demand.