-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:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by massive unemployment and the collapse of financial institutions.

Dispossessed Farmers

Farmers who have lost their land and livelihood, often due to economic, political, or environmental pressures.

Metropolitan Statistical Area (MSA)

An area with at least one major city of 50,000 or more inhabitants that is surrounded by adjacent counties that are socially and economically integrated with the city core.

Megacity

A metropolitan area with a total population in excess of ten million people.