Reference: 08-15
Jimbob Co There Were No Beginning Inventories

question 42

Multiple Choice

Reference: 08-15
Jimbob Co.'s records include the following information for the month of January: $$\begin{array} { | l | l | l | } \hline \text { Units manufactured } & & 5,000 \\\hline \text { Units sold } && 4,000 \\\hline \text { Selling price per unit } && \$ 50 \\\hline \text { Variable manufacturing costs per unit: } & & \\\hline \text { Direct materials } & & \$ 5 \\\hline \text { Direct labour } & &\$ 2 \\\hline \text { Manufacturing overhead } && \$ 1 \\\hline \begin{array} { l } \text { Variable selling and administrative expenses per } \\\text { unit sold }\end{array} && \$ 1 \\\hline \text { Total fixed costs: } & & \\\hline \text { Manufacturing overhead } && \$ 10,000 \\\hline \text { Selling and administrative expenses } && \$ 20,000 \\\hline\end{array}$$ There were no beginning inventories.
-Using absorption costing, what is the net income for January?

• A)$158,000.
• B)$134,000.
• C)$185,000.
• D)$136,000.

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Definitions:

Electrical Charge

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field, existing in two types: positive and negative.

Dendrite

A branched extension of a neuron that receives impulses from other neural cells and transmits them toward the cell body.

Absolute Refractory Period

A period immediately following the transmission of an impulse in nerve or muscle in which a nerve or muscle is incapable of generating another impulse.

Chloride Ions

Negatively charged particles (Cl-) that play crucial roles in bodily functions such as balancing fluids and transmitting nerve impulses.