Head on Straight,Inc

Multiple Choice

Head on Straight,Inc.sells hats to fine retailers across the world.It uses a FIFO perpetual inventory system.Inventory data is presented in the table below. Determine the operating income for the period,assuming that 1,000 units were sold for $170 each.Operating expenses excluding cost of goods sold totaled $40,000.

A) $110,000
B) $16,000
C) $65,000
D) $20,000