Croft Corporation produces a single product. Last year, the company had a net operating income of...

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Croft Corporation produces a single product. Last year, the company had a net operating income of $160,000 using absorption c

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Answer 1

Answer #1


The correct answer is option B i.e. 41900 Units

Calculation of Closing Inventory unit

Fixed manufacturing overhead deferred = $ 160,000 - $ 149,000

Fixed manufacturing overhead deferred = $11,000

Closing stock unit = $11,000 / 10 per unit = 1100 unit

Sale for the last year = Opening Inventory +Units Produced - Closing Inventory

Sale for the last year = 0 + 43000 - 1100 = 41900 Units

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Answer 2

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