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Question
Information from the records of Place, Inc., for December is as follows:| Sales | $820,000 |
| Selling and administrative expenses | 140,000 |
| Direct materials purchases | 176,000 |
| Direct labor | 200,000 |
| Factory overhead | 270,000 |
| Direct materials, December 1 | 24,000 |
| Work in process, December 1 | 50,000 |
| Finished goods, December 1 | 46,000 |
| Direct materials, December 31 | 28,000 |
| Work in process, December 31 | 56,000 |
| Finished goods, December 31 | 38,000 |
Net income for the month of December is:
a. $644,000.
b. $36,000.
c. $636,000.
d. $180,000.
Answer
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