Answer:
B.$325,000
Explanation:
Under absorption costing, the period costs include general and administrative costs as well as product costs. Therefore, all of the costs provided should be considered for calculating the operating income for the period.
The operating income is:
[tex]I = Sales - Costs\\I = \$900,000-(\$100,000+\$250,000+\$100,000+\$125,000)\\I=\$325,000[/tex]
The operating income for May under absorption costing IS $325,000.
