Plz add explanation. Question3 Based on the following PARTIAL Income Statement,
ID: 2597307 • Letter: P
Question
Plz add explanation.
Question3 Based on the following PARTIAL Income Statement, answer the questions below: Conkeycorp Income Statement For the year ended December 31, 2014 $50,000 Revenue Beginning inventory Inventory purchase:s during the year Ending inventory 20,000 10,000 Expenses 10,000 A) What is the COGS for the year ended Dec 31, 2014? (show your work) 3 marks COGS = (20,000 + 10,000-10,000 = $20,000 B) What is the Income (before tax) for the year ended Dec 31, 2014? (show your work) 3 marks INCOME 50,000-20,000-10,000 = $20,000Explanation / Answer
A) Cost of goods sold id the direct costs attributable to the production of the goods sold in a company.
Cost of goods sold for the year ended December 31, 2014 = Beginning Inventory + Inventory purchases during the year - Ending inventory = (20,000 +10,000) - 10,000 = $20,000
B) Income (before taxes) for the year ended December 31, 2014 = Revenue - Cost of goods sold - expenses
= 50,000 - 20,000 - 10,000 = $20,000