Question

Helmers Corporation manufactures a single product. Variable costing net operating income last year was $95,000 and this year was $113,900. Last year, $35,400 in fixed manufacturing overhead costs were released from inventory under absorption costing. This year, $13,500 in fixed manufacturing overhead costs were deferred in inventory under absorption costing. What was the absorption costing net operating income last year

Answer 1

Answer:

$59,600

Explanation:

Calculation for the absorption costing net operating income last year

Using this formula

Absorption costing net operating income last year=Variable costing net operating income last year -fixed manufacturing overhead costs last year

Let plug in the formula

Absorption costing net operating income last year=$95,000-$35,400

Absorption costing net operating income last year=$59,600

Therefore the absorption costing net operating income last year was $59,600