Net operating income for the month under absorption costing

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Reference no: EM131287765

Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $121 Units in beginning inventory 800 Units produced 8,700 Units sold 8,800 Units in ending inventory 700 Variable costs per unit: Direct materials $26 Direct labor $43 Variable manufacturing overhead $7 Variable selling and administrative $17 Fixed costs: Fixed manufacturing overhead $69,600 Fixed selling and administrative $163,300 The company produces the same number of units every month, although the sales in units vary from month to month.

The company's variable costs per unit and total fixed costs have been constant from month to month. What is the net operating income for the month under absorption costing?

$12,700

$3,800

$21,100

$3,800

Reference no: EM131287765

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