Question

Conway Brush Company sells standard hair brushes. The following information summarizes Conway's operating activities for 2018: (Click the icon to view the information.) Requirements 1. Calculate the operating income for 2018. 2. Conway sold 6,600 brushes in 2018. Compute the unit cost for one brush. Requirement 1. Calculate the operating income for 2018. A Data Table Conway Brush Company Income Statement Year Ended December 31, 2018 Revenue: Selling and Administrative Expenses $ Purchases 47,058 85,800 151,800 Cost of Goods Sold: Net Sales Revenue Merchandise Inventory, January 1, 2018 Merchandise Inventory, December 31, 2018 7,920 11,748 Print Print Done Done Cost of Goods Sold Gross Profit Operating Income

Answer 1

Conway Brush Company Income statement Year ended December 31, 2018 $ 1,51,800 Revenue Cost of goods sold Opening Inventory 1-1-2018 Purchases Closing Inventory 31-12-2018 Cost of goods sold (+) (-) $ $ $ 7,920 85,800 11,748 $ 81,972 Gross Profit Selling & Administrative expenses $ $ 69,828 47,058 Operating Income $ 22,770

Unit cost of one brush (If the sold units are 6600)

= Cost of goods sold/Number of brushes sold

=81972/6600

=12.42