Question: How is this the correct answer? 129. Frosting Corp. has provided the following relating to the most recent month (August 31, 2020) of operations, for
How is this the correct answer?
129. Frosting Corp. has provided the following relating to the most recent month (August 31, 2020) of operations, for their main product, cupcakes 20,000 18,000 20,000 20,000 17,500 21,000 28,000 19,000 Baker's salaries Finished goods inventory, beginning Finished goods inventory, ending General & administrative expenses Indirect materials Production Supervisor, Salary Purchases of raw materials Raw materials inventory, ending Raw materials inventory, beginning Rent on production factory Rent, retail store Sales Utilities on production factory Utilities, retail store Wages, retail staff WIP inventory, beginning WIP inventory, ending 18,000 19,000 18,000 243,000 17,500 17,000 20,000 19,500 21,500 What was the operating income for the period? A. $50,000 B. $68,000 C. $88,000 D. $125,000
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