Reference: 08-15
Jimbob Co There Were No Beginning Inventories

Reference: 08-15
Jimbob Co.'s records include the following information for the month of January: $$\begin{array} { | l | l | l | } \hline \text { Units manufactured } && 5,000 \\\hline \text { Units sold } & & 4,000 \\\hline \text { Selling price per unit } && \$ 50 \\\hline \text { Variable manufacturing costs per unit: } & & \\\hline \text { Direct materials } && \$ 5 \\\hline \text { Direct labour } & & \$ 2 \\\hline \text { Manufacturing overhead } && \$ 1 \\\hline \begin{array} { l } \text { Variable selling and administrative expenses per } \\\text { unit sold }\end{array} && \$ 1 \\\hline \text { Total fixed costs: } & & \\\hline \text { Manufacturing overhead } && \$ 10,000 \\\hline \text { Selling and administrative expenses } && \$ 20,000 \\\hline\end{array}$$ There were no beginning inventories.
-Using variable costing, what is the net income for January?

A) $136,000.
B) $134,000.
C) $158,000.
D) $185,000.