During its first year of operations, Silverman Company paid $14,000 for direct materials and $ 19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $ 7,000 $28,000

During its first year of operations, Silverman Company paid $14,000 for direct materials and $ 19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $ 7,000 $28,000

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Description: During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages. Lease payments and utilities on the production facilitiesamounted to $17,000 while general, selling, and administrati

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

During its first year of operations, Silverman Company paid $14,000 for direct materials and $
19,000 for production workers' wages. Lease payments and utilities on the production facilities
amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The
company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was
Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $
7,000 $28,000

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