Newton Corporation Entered into the Following Transactions During Its First

question 125

Multiple Choice

Newton Corporation entered into the following transactions during its first year of operations.(Assume all transactions involve cash.)
1) Acquired $2,000 of capital from the owners.
2) Purchased $600 of direct raw materials.
3) Used $400 of these direct raw materials in the production process.
4) Paid production workers $800 cash.
5) Paid $400 for manufacturing overhead (applied and actual overhead are the same) .
6) Started and completed 200 units of inventory.
7) Sold 50 units at a price of $12 each.
8) Paid $80 for selling and administrative expenses.
The amount of net income for the year was:

• A)$100.
• B)$75.
• C)$50.
• D)$120.

---

Definitions:

Abdicating Responsibilities

The act of renouncing, giving up, or avoiding carrying out one's duties or responsibilities.

Power Wielders

Individuals or entities that hold and exercise authority or influence over others, often determining or influencing outcomes and decisions.

Own Interests

Personal or individual goals, desires, or priorities that may or may not align with those of a group or organization.

Leader-match

The compatibility or fit between the leadership style of a leader and the preferred styles or expectations of the followers.