Hudson Inc. has the following information available for September:
$\begin{array}{c}
\begin{array}{l}
\
\text { Raw materials }\
\text { Work-in-process }\
\text { Finished goods}\
\
\text { Raw materials purchased}\
\text { Direct labour costs}\
\text { Manufacturing overhead costs}\
\text { Administrative costs}\
\text { Marketing costs}\

\end{array}
\begin{array}{rr}
\underline{\text { Beginning} } &\underline{ \text { Ending }}\
8000 & \$ 5000 \
30000 & 40000 \
7000 & 3000 \
\
& 25000 \
& 70000 \
& 30000 \
& 12000 \
& 6000

\end{array}
\end{array}$

-Sales revenue for September totalled $400 000.Net income for September is:

Question

Hudson Inc. has the following information available for September:
$\begin{array}{c}
\begin{array}{l}
\
 \text { Raw materials }\
 \text { Work-in-process }\
 \text { Finished goods}\
\
 \text { Raw materials purchased}\
 \text { Direct labour costs}\
 \text { Manufacturing overhead costs}\
 \text { Administrative costs}\
 \text { Marketing costs}\

\end{array}
\begin{array}{rr}
\underline{\text { Beginning} } &\underline{ \text { Ending }}\
8000 & \$ 5000 \
30000 & 40000 \
7000 & 3000 \
\
& 25000 \
& 70000 \
& 30000 \
& 12000 \
& 6000

\end{array}
\end{array}$

-Sales revenue for September totalled $400 000.Net income for September is:

Quizplus · Accepted Answer

To calculate net income, we first need to determine the cost of goods sold (COGS) and total expenses. 1. **Calculate COGS:**   - Raw materials used = Beginning raw materials + Purchased - Ending raw materials = $8,000 + $25,000 - $5,000 = $28,000   - Total manufacturing costs = Raw materials used + Direct labor + Manufacturing overhead = $28,000 + $70,000 + $30,000 = $128,000   - COGS = Beginning work-in-process + Total manufacturing costs - Ending work-in-process = $30,000 + $128,000 - $40,000 = $118,000   - Adjusted COGS = COGS + Beginning finished goods - Ending finished goods = $118,000 + $7,000 - $3,000 = $122,0002. **Calculate Total Expenses:**   - Total expenses = Administrative costs + Marketing costs = $12,000 + $6,000 = $18,0003. **Calculate Net Income:**   - Net income = Sales revenue - COGS - Total expenses = $400,000 - $122,000 - $18,000 = $260,000Therefore, the correct answer is B) $260,000.

Hudson Inc -Sales Revenue for September Totalled $400 000