-Assuming That Cost of Goods Sold for January Was $124,000,what

question 82

Multiple Choice

$\begin{array}{l}\text { Boardman Company reported the following data for the month of January: }\\\begin{array} { | l | r | r | } \hline \text { Inventories: } & \mathbf { 1 } / \mathbf { 1 } & \mathbf { 1 / 3 1 } \\\hline \text { Raw materials } & \$ 32,000 & \$ 31,000 \\\hline \text { Work in process } & \$ 18,000 & \$ 12,000 \\\hline \text { Finished goods } & \$ 30,000 & \$ 35,000 \\\hline\end{array}\end{array}$
$\begin{array} { | l | r | } \hline \text { Additional information: } & \\\hline \text { Sales revenue } & \$ 210,000 \\\hline \text { Direct labour costs } & \$ 40,000 \\\hline \text { Manufacturing overhead costs } & \$ 70,000 \\\hline \text { Selling expenses } & \$ 25,000 \\\hline \text { Administrative expenses } & \$ 35,000 \\\hline\end{array}$
-Assuming that cost of goods sold for January was $124,000,what was the net income for January?

• A) $61,000.
• B) $26,000.
• C) $51,000.
• D) $25,000.

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Definitions:

Interest Rate

The ratio at which interest is applied to money loaned by a borrower from a lending party.

Compounded Semi-annually

A financial term indicating the interest on an investment is calculated and added to the principal balance twice every year, enhancing the total return over periods.

Obligation

A duty or commitment to pay money or perform some action.

Equivalent

Equal in value, amount, function, meaning, or status; often used in mathematics to describe expressions or amounts that are the same when compared or evaluated.