Question

ezto.h uuldLIUICUM .LPA Sales Raw materials inventory, Dec 31, 2014 Work in process inventory, Dec 31, 2014 Finished goods inventory, Dec 31, 2014 Raw materials purchases Direct labor Factory computer supplies used Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, Dec 31, 2015 Work in process inventory, Dec 31, 2015 Finished goods inventory, Dec 31, 2015 $1,250,000 37,000 53.900 62.750 175,600 225,000 17,840 47,000 5,250 57.000 94,000 129,300 42,700 41,500 67,300 Prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,390 DELRAY MFG. Income Statement For Year Ended December 31, 2015 Cost of goods sold: Cost of goods available for sale Cost of goods sold Operating expenses: Total operating expenses Operating income

Answer 1

Delray Mfg. Income Statement For the year ended December 31, 2015
Sales		$ 1,250,000
Cost of Goods Sold
Beginning finished goods invetory	62,750
Cost of Goods Manufactured	534,390
Cost of Goods Available for Sale	597,140
Less: Ending finished goods inventory	(67,300)
Cost of Goods Sold		529,840
Gross Profit		720,160
Operating Expenses
Advertising Expense	94,000
General and Administrative Expense	129,300
Total Operating Expenses		223,300
Operating Income		$ 496,860