Lasorsa Corporation Manufactures a Single Product

question 183

Multiple Choice

Lasorsa Corporation manufactures a single product. Variable costing net operating income last year was $86,000 and this year was $98,000. Last year, $4,000 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $27,000 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. What was the absorption costing net operating income last year?

• A)$63,000
• B)$86,000
• C)$90,000
• D)$82,000

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Definitions:

Vegetables

Edible plants or parts of plants, such as leaves, stems, roots, and seeds, commonly consumed in diets and known for nutritional benefits.

Essential Nutrients

Nutrients that cannot be synthesized by the body and must be obtained from the diet, including certain amino acids, fatty acids, vitamins, and minerals.

Kilocalories

A unit of energy measurement in nutrition, commonly called a calorie, equivalent to 1000 small calories.

Energy Content

The amount of energy stored in a substance or system, which can be released or utilized through various processes.