Cromuel Corporation Has Provided the Following Data for January

question 145

Multiple Choice

Cromuel Corporation has provided the following data for January. The beginning balance in the raw materials inventory account was $27,000. During the month, the company made raw materials purchases amounting to $50,000. At the end of the month, the balance in the raw materials inventory account was $24,000. Direct labor cost was $53,000 and manufacturing overhead was $70,000. The beginning balance in the work in process account was $14,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $33,000 and the ending balance was $51,000. Sales totaled $270,000. Selling expense was $21,000 and administrative expense was $48,000.
-The net operating income for January was:

• A) $41,000
• B) $78,000
• C) $110,000
• D) $28,000

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Definitions:

Reddened Area

A patch of skin that appears red due to inflammation, irritation, or the presence of an underlying condition.

Inconclusive

Not leading to a firm conclusion or definitive result; leaving questions unanswered.

Pursed-Lip Breathing

A breathing technique that involves breathing in through the nose and out through tightly pressed (pursed) lips to improve breath control.

Emphysema

A long-term, progressive disease of the lungs that primarily causes shortness of breath due to over-inflation of the air sacs (alveoli).