Management of Berndt Corporation Has Asked Your Help as an Intern

question 109

Multiple Choice

Management of Berndt Corporation has asked your help as an intern in preparing some key reports for August. The beginning balance in the raw materials inventory account was $33,000. During the month, the company made raw materials purchases amounting to $62,000. At the end of the month, the balance in the raw materials inventory account was $30,000. Direct labor cost was $46,000 and manufacturing overhead was $74,000. The beginning balance in the work in process account was $13,000 and the ending balance was $19,000. The beginning balance in the finished goods account was $54,000 and the ending balance was $50,000. Sales totaled $270,000. Selling expense was $18,000 and administrative expense was $49,000.
-The net operating income for August was:

• A) $20,000
• B) $21,000
• C) $87,000
• D) $83,000

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls basic emotions and drives.

Hippocampus

A neural center that is located in the limbic system; helps process explicit memories for storage.

Cerebellum

The “little brain” at the rear of the brainstem; functions include some nonverbal learning, processing sensory input, and coordinating movement output and balance.

Cerebellum

A region of the brain that plays an important role in motor control. It also contributes to coordination, precision, and accurate timing.