Reference no: EM132858189

Question - The following data (in thousands of dollars) have been taken from the accounting records of Acterna Corporation for the just completed year.

Sales $930

Direct materials inventory, beginning $70

Direct materials inventory, ending $40

Purchases of direct materials $190

Direct labor $150

Variable Manufacturing overhead $110

Fixed Manufacturing overhead $100

Administrative expenses $90

Selling expenses $120

Work in process inventory, beginning $80

Work in process inventory, ending $70

Finished goods inventory, beginning $90

Finished goods inventory, ending $140

Required - Using the Absorption costing method, compute the net income for the year (in thousands of dollars)?

a. $190

b. $170

c. $390

d. $180