Royal Cabinet Co. utilizes lean production and JIT manufacturing in its factory and builds custom cabinets for retail customers. The company had no WIP or finished goods inventory and incurred the following costs during the year.
Direct materials used $140,000
Direct labor 120,000
Factory overhead 160,000
Marketing expenses 40,000
Administrative expenses 80,000
If the company’s sales for the year totaled $800,000, Royal’s income was:
a. $260,000
b. $380,000
c. $300,000
d. none of the above

Answer rating: 100% (QA)

The correct answer is 260000 Explanation Given Total sales of the year 800000 Now total ... View the full answer