Nixon Corporation was started on January 1, 2012. The company entered into the f

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 $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:

Explanation / Answer

Annual income Sales 180*6 1080 direct material 330 payment of wages 530 manuf o/h 330 Total manuf cost 1190 units produced 250 production cost per unit 4.76 production cost for 180 units 4.76*180 856.8 operating pft 1080-856.80 223.2 admn exp 170 Net income 53.2

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.