Lasorsa Corporation Manufactures a Single Product

question 222

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 this year?

• A)$125,000
• B)$72,000
• C)$75,000
• D)$121,000

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