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Scott Products Manufactures High-Quality Running Shoes In Addition, 42 400 Pairs Were Produced in 2009 Out

Question 45

Multiple Choice

Scott Products manufactures high-quality running shoes. The following information is available for 2009:
 Raw materials inventory Work-in-process inventory Finished goods inventory Raw materials purchased Direct labour costs Factory rent Factory supplies Factory utilities Factory depreciation Marketing costs Administrative costs Beginning Ending $25000$8200028000013000090000120000$2500003400006000020000150003000025000100000\begin{array}{c}\begin{array}{l}\\ \text { Raw materials inventory}\\ \text { Work-in-process inventory}\\ \text { Finished goods inventory}\\\\ \text { Raw materials purchased}\\ \text { Direct labour costs}\\ \text { Factory rent}\\ \text { Factory supplies}\\ \text { Factory utilities}\\ \text { Factory depreciation}\\ \text { Marketing costs}\\ \text { Administrative costs}\\\end{array}\begin{array}{rr}\underline{\text { Beginning} } &\underline{ \text { Ending }}\\\$ 25000 & \$ 82000 \\280000 & 130000 \\90000 & 120000 \\& \\& \$ 250000 \\& 340000 \\&60000 \\&20000 \\& 15000 \\&30000 \\& 25000 \\& 100000\end{array}\end{array}


In addition, 42 400 pairs were produced in 2009 out of which 40 900 pairs were sold for $70 each.
-What is net income for 2009? (ignore taxes)


A) $1 920 000
B) $2 025 000
C) $1 890 000
D) $2 045 000

Correct Answer:

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