During the Current Period,10,000 Units Were Produced and 12,000 Units

Multiple Choice

During the current period,10,000 units were produced and 12,000 units were sold.Fixed manufacturing costs incurred amounted to $120,000.An absorption costing income statement would report fixed manufacturing costs as which of the following?

A) Costs of $144,000 as a deduction from gross profit to obtain operating income
B) Overhead of $120,000 as a deduction from sales revenue to obtain gross profit
C) Overhead of $144,000 as a deduction from sales revenue to obtain gross profit
D) Costs of $120,000 as a deduction from sales revenue to obtain contribution margin