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

question 32

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 variable costing, what is the net income for January?

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

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Definitions:

Bar Codes

A series of lines of varying widths and spacings which represent data, scanned and read to identify a product or object.

Customization

The process of modifying products, services, or systems to meet specific customer needs or preferences.

Mobility

The ability of technology, services, or workers to be moved or accessed from different locations, enhancing flexibility and connectivity.

RFID Tag

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, containing electronically stored information.