Prepare Bravo\'s Income Statement for FY 16. Include a detailed Cost of Goods So
ID: 2521921 • Letter: P
Question
Prepare Bravo's Income Statement for FY 16. Include a detailed Cost of Goods Sold section.
Bravo Company manufactures quality gentlemen's clothing. The following selected financial information for the fiscal year 2016 is provided: Item $100,000 65,000 40,000 10,000 30,000 15,000 10,000 Sales Cost of Goods Manufactured Direct Material Purchased Factory Overhead Work in Process January 1 Work in Process December 31 Direct Material December 31 Finished Goods Inventory 60,000 December 31 15,000 30,000 50,000 Net Income Direct Materials used Cost of Goods Sold Use this information to prepared Bravo's Income Statement for FY 2016. Include a detailed Cost of Goods Sold section within this income statement (Round dollar values & enter as whole dollars only.)Explanation / Answer
INCOME STATEMENT Sales 100,000 less:cost of goods sold Beginning Finished goods inventory [110000-65000] 45000 Add:cost of goods manufactured 65000 cost of goods available for sale [60000+50000] 110000 less:Ending finished goods inventory (60000) cost of go0ds sold (50000) Gross margin 50000 Less:operating expense (35000) Net Income 15000