During the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement
During the current period, 14,000 units were produced and 12,000 units were sold. Fixed manufacturing costs incurred amounted to $126,000. An absorption costing income statement would report fixed manufacturing costs as which of the following? Select one: a. Costs of $108,000 as a deduction from gross profit to obtain operating income b. Overhead of $126,000 as a deduction from sales revenue to obtain gross profit c. Overhead of $108,000 as a deduction from sales revenue to obtain gross profit d. Costs of $126,000 as a deduction from sales revenue to obtain contribution margin
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