During the Current Period, 14,000 Units Were Produced and 12,000

Multiple Choice

During the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement would report fixed manufacturing costs as which of the following?

A) Costs of $108,000 as a deduction from gross profit to obtain operating income
B) Overhead of $126,000 as a deduction from sales revenue to obtain gross profit
C) Overhead of $108,000 as a deduction from sales revenue to obtain gross profit
D) Costs of $126,000 as a deduction from sales revenue to obtain contribution margin