Reference no: EM132969086

Question - Horton Corporation entered into the following transactions during its first year of operations. All transactions involve cash.

1) Acquired $2,000 of capital from the owners.

2) Purchased $600 of direct raw materials.

3) Used $500 of these direct raw materials in the production process.

4) Paid production workers $900 cash.

5) Paid $400 for manufacturing overhead (applied and actual overhead are the same).

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.

Required - Determine the absorption net income for this month.