Pen Corporation Manufactures a Single Product

question 12

Essay

Pen Corporation manufactures a single product. Last year, the company's variable costing net operating income was $55,700 and ending inventory increased by 800 units. Fixed manufacturing overhead cost per unit was $3 in both beginning and ending inventory.
Required:
Determine the absorption costing net operating income for last year. Show your work!

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Definitions:

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.

Oxygen Deprivation

A state where there is an insufficient supply of oxygen to the body that can lead to critical health issues or damage to organs.

Developing Fetus

A term referring to a human embryo after the initial stages of development, specifically from the ninth week after fertilization until birth.

Hippocampus

A region of the brain important for learning and memory, located in the medial temporal lobe.