Question - Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve cash.)
1) Acquired $2,000 of capital from the owners.
2) Purchased $600 of direct raw materials.
3) Used $400 of these direct raw materials in the production process.
4) Paid production workers $800 cash.
5) Paid $400 for manufacturing overhead.
6) Started and completed 200 units of inventory.
7) Sold 50 units at a price of $12 each.
8) Paid $80 for selling and administrative expenses.
The amount of net income for the year was:
a. $100.
b. $75.
c. $50.
d. $120.