The following information relates to Marshall Manufacturing's current accounting period: $\begin{array}{llr}
\text { Raw materials used } &\$16,300\
\text { Direct labor wages } &32,300\
\text { Sales salaries and commissions } &24,300\
\text { Depreciation on production equipment } &2,930\
\text { Rent on manufacturing facilities } &3,930\
\text {Administrative supplies and utilities } &4,300\
\text { Sales revenue } &98,000\
\text {Units produced } &3,300\
\text { Unit sold } &3,300\
\end{array}$ Based on this information, what is the company's net income? (Do not round intermediate calculations.)
A) $16,870
B) $31,640
C) $13,940
D) $14,930

Question

The following information relates to Marshall Manufacturing's current accounting period: $\begin{array}{llr}
  \text { Raw materials used } &\$16,300\
 \text { Direct labor wages } &32,300\
 \text { Sales salaries and commissions } &24,300\
 \text { Depreciation on production equipment } &2,930\
 \text { Rent on manufacturing facilities } &3,930\
 \text {Administrative supplies and utilities  } &4,300\
 \text { Sales revenue } &98,000\
 \text {Units produced  } &3,300\
 \text { Unit sold } &3,300\
\end{array}$ Based on this information, what is the company's net income? (Do not round intermediate calculations.)
A) $16,870
B) $31,640
C) $13,940
D) $14,930

Quizplus · Accepted Answer

Net income is calculated as Sales Revenue minus Total Expenses. Total Expenses include Raw Materials, Direct Labor, Depreciation, Rent, Sales Salaries, and Administrative Supplies. Calculating these gives: $16,300 + $32,300 + $2,930 + $3,930 + $24,300 + $4,300 = $84,060. Net Income = $98,000 - $84,060 = $13,940.

The Following Information Relates to Marshall Manufacturing's Current Accounting Period