Question

A B C GINOCERA INC. Income Statement For the Year Ended December 31, 20Y8 Sales Cost of goods sold Gross proft Selling expenses: 瑕挺//撥11 s 3,600,000 2,000,000 224,000 Promotional materials Infomercial campaign Shipping expenses Total selling expenses 5,824,000 Administrative expenses: 800,000 Legal expenses Total operating expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit (knife): Direct materials: Hardened steel blanks Wood (for handle) Packaging Total direct materials 4.00 1.50 0.50 6.00 Direct labor Factory overhead Total manufacturing cost per knife x Number of units sold Cost of goods sold 3.20

Answer 1

1.

GINOCERA INC. Income Statement For the year ended December 31, 20Y8
	$	$	$
Sales			17,920,000
Cost of Goods Sold			10,864,000
Gross Profit			7,056,000
Selling Expenses
Promotional Materials	3,600,000
Infomercial Campaign	2,000,000
Shipping Expenses	224,000
Total Selling Expenses		5,824,000
Administrative Expenses
Legal Expenses		800,000
Total Operating Expenses			6,624,000
Income from Operations			432,000
Cost of Goods Sold
Direct Materials
Hardened Steel Blanks	4.00
Wood	1.50
Packaging	0.50
Total Direct Materials		6.00
Direct Labor		0.50
Factory Overhead		3.20
Total Manufacturing Cost per Knife		9.70
Number of Units Sold		1,120,000
Cost of Goods Sold		$ 10,864,000

2. Finished Goods Inventory Balance, December 31, 20Y8:

Units Produced	1,200,000
Less: Units Sold	1,120,000
Units in Ending Inventory	80,000
Manufacturing Cost per Unit	$ 9.70
Cost of Finished Goods Inventory	$ 776,000

3. Work in Process Inventory Balance, December 31, 20Y8:

Additional Units Waiting for Assembly	25,000
Direct Materials and Overhead per Unit	$ 9.20
Cost of Work in Process Inventory	$ 230,000