Which of the following statements is true for Year 2?

A) The amount of fixed manufacturing overhead deferred in inventories is $60,000
B) The amount of fixed manufacturing overhead released from inventories is $60,000
C) The amount of fixed manufacturing overhead deferred in inventories is $592,000
D) The amount of fixed manufacturing overhead released from inventories is $592,000

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, including rent, salaries, and equipment depreciation.

Deferred

A term referring to expenses or incomes that have been recorded but not yet incurred or realized, impacting future periods.

Inventories

The complete list of items such as merchandise, raw materials, and finished goods that a company holds for sale or production.