Question
Nixon Corporation was started on January 1, 2012. The company entered into the following transactions during the year (Assume all transactions involve cash): 1) Acquired
Nixon Corporation was started on January 1, 2012. The company entered into the following transactions during the year (Assume all transactions involve cash):
1) Acquired $2,300 of capital from the owners.
2) Purchased $430 of direct raw materials.
3) Used $330 of these direct raw materials in the production process.
4) Paid production workers $530 cash.
5) Paid $330 for manufacturing overhead (applied and actual overhead are the same).
6) Started and completed 250 units of inventory.
7) Sold 180 units at a price of $6 each.
8) Paid $170 for selling and administrative expenses.
The amount of net income for 2012 was:
$43.20. | |
$68.20. | |
$53.20. | |
$223.20. |
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