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:

OSC

The Ontario Securities Commission, a regulatory agency in Ontario, Canada that oversees the capital markets in the province.

CICA Handbook

The official manual for accounting practices in Canada, issued by the Canadian Institute of Chartered Accountants, serving as a reference for accountants on standards and regulations.

Canadian Accounting Standards

The set of accounting principles that guide financial reporting and practices in Canada, ensuring consistency and transparency across financial statements.

Publicly Accountable Enterprises

Organizations that have a duty to report financial information to the public, often because their debt or equity instruments are traded in a public market.