Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company Th
ID: 2339956 • Letter: C
Question
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company
The following information is available for Bandera Manufacturing Company for the month ending January 31:
For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income.
(a)
(b)
(c)
Cost of goods manufactured $248,950 Selling expenses 83,160 Administrative expenses 43,960 Sales 529,680 Finished goods inventory, January 1 59,850 Finished goods inventory, January 31 54,560Explanation / Answer
a Bandera Manufacturing Company Cost of Goods Sold January 31 Finished goods inventory, January 1 59850 Cost of goods manufactured 248950 Cost of finished goods available for sale 308800 Finished goods inventory, January 31 54560 Cost of goods sold 254240 b Bandera Manufacturing Company Gross Profit January 31 Sales 529680 Cost of goods sold 254240 Gross profit 275440 c Bandera Manufacturing Company Net Income January 31 Gross profit 275440 Operating expenses: Selling expenses 83160 Administrative expenses 43960 Total operating expenses 127120 Net income 148320