Jeppson Company Manufactures Computer Hard Drives -Using Absorption Costing,what Is Operating Income for Last Month?
A)$120,000

Multiple Choice

Jeppson Company manufactures computer hard drives.The following data is related to sales and production of the computer hard drives for last year. $\begin{array}{|l|c|}\hline \text { Selling price per unit } & \$ 100.00 \\\hline \text { Variable manufacturing costs per unit } & \$ 45.00 \\\hline \text { Variable selling and administrative expenses per unit } &\$ 6.00 \\\hline \text { Fixed manufacturing overhead (in total) } & \$ 30,000 \\\hline \text { Fixed selling and administrative expenses (in total) } & \$ 8,000 \\\hline \text { Units produced during year } & 1,500 \\\hline \text { Units sold during year } & 1,200 \\\hline\text { Units in beginning inventory }&0\\\hline\end{array}$

-Using absorption costing,what is operating income for last month?

A) $120,000
B) $ 26,800
C) $ 57,200
D) $182,800