A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling price
|
$112
|
| |
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
5,500
|
|
Units sold
|
5,300
|
|
Units in ending inventory
|
200
|
| |
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$33
|
|
Direct labor
|
$37
|
|
Variable manufacturing overhead
|
$5
|
|
Variable selling and administrative
|
$6
|
| |
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$71,500
|
|
Fixed selling and administrative
|
$79,500
|
What is the net operating income for the month under absorption costing?
$2,600
$1,700
$13,300
$15,900
It is not option C.