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The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation of the just completed year: Sales $910 Raw materials inventory, beginning $80 Raw

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation of the just completed year:
Sales $910
Raw materials inventory, beginning $80
Raw materials inventory, ending $20
Purchases of raw materials $100
Direct labor $130
Manufacturing overhead $200
Administrative expenses $160
Selling expenses $140
Work in process inventory, beginning $40
Work in process inventory, ending $10
Finished goods inventory, beginning $130
Finished goods inventory, ending $150

The net operating income for the year (in thousands of dollars) was
A.$410
B.$180
C.$40
D.$110


I added all the expenses together then subtracted them from the sales, and got B. $180. I just want to make sure that the way I figured this out was right and wanted to make sure the answer is right. Thanks in advance!

Aug 17 2021 View more View Less

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