Question

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). Beginning raw materials inventory Ending raw materials inventory Direct labor Operating expenses Purchases of direct materials Beginning work in process inventory Ending work in process inventory Sales revenue Manufacturing overhead Beginning finished goods inventory Ending finished goods inventory What was operating income? $4500 $2360 $3740 $2960 $310 $240 $340 $690 $410 $380 $600 $4500 $820 $290 $260

Answer 1

= = + + beginning raw material inventory purchases raw material available ending raw material inventory raw materials used labor overhead total manufacturing costs beginning work in progress inventory total work in progress inventory ending work in progress inventory cost of goods manufactured beginning finished goods inventory goods available lending finished goods inventory cost of goods sold $310 $410 $720 $240 $480 $340 $820 $1,640 $380 $2,020 $600 $1,420 $290 $1,710 $260 $1,450 = + - = sales revenue cost of goods sold gross profit operating expenses operating income $4,500 $1,450 $3,050 $690 $2,360 hence, the correct answer is B) $2360

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