(Solved): Sony manufacturers the Walkman, a mobile tape player that provides "a new way to enjoy music in hi ...

Sony manufacturers the Walkman, a mobile tape player that provides "a new way to enjoy music in high quality anywhere at any time." Sony uses a job order costing system and allocates actual manufacturing overhead to production. The following information was provided by the company for the year ended December 31, 1985: \( { }^{*} 70 \% \) of the building is devoted to production; \( 30 \% \) of the building is devoted to selling and administrative functions. In addition to the above information, \( \$ 531,000 \) raw materials were purchased during the period. Sony's beginning and ending Work in Process inventories were \( \$ 245,000 \) and \( \$ 290,000 \), respectively. The net decrease in the Company's finished goods inventories during the period was \( \$ 25,000 \). Calculate Operating Income assuming a sales level of \( \$ 1,500,000 \). A. \( \$ 573,200 \) B. \( \$ 911,800 \) C. \( \$ 360,000 \) D. \( \$ 528,600 \) E. \( \$ 560,000 \)