Question
Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.) 1) Acquired $1,600 of capital from the
Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.)
1) Acquired $1,600 of capital from the owners.
2) Purchased $360 of direct raw materials.
3) Used $260 of these direct raw materials in the production process.
4) Paid production workers $460 cash.
5) Paid $260 for manufacturing overhead (applied and actual overhead are the same).
6) Started and completed 250 units of inventory.
7) Sold 110 units at a price of $6 each.
8) Paid $100 for selling and administrative expenses.
The amount of net income for the year was:
Multiple Choice
$128.80.
$95.00.
$110.00.
$120.00.
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