Question

Renkas Brush Company sells standard hair brushes. The following information summarizes Renkas's operating activities for 2018: BE: (Click the icon to view the information.) Requirements 1. Calculate the operating income for 2018. 2. Renkas sold 6,500 brushes in 2018. Compute the unit cost for one brush. i Data Table - X Requirement 1. Calculate the operating income for 2018. Selling and Administrative Expenses Purchases Renkas Brush Company Income Statement Year Ended December 31, 2018 44,200 71,500 130,000 Net Sales Revenue 9,100 Merchandise Inventory, January 1, 2018 Merchandise Inventory, December 31, 2018 Revenue: Net Sales Revenue 10,400 Cost of Goods Sold: Beginning Merchandise Inventory Print Done Purchases Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Income

Answer 1

Solution

Renkas Brush Company
Income statement
Year ended December 31, 2018
Revenue
Net sales revenue		$ 130,000.00
Cost of goods sold
Beginning merchandise inventory	$    9,100.00
Purchases	$ 71,500.00
Merchandise inventory available for sale	$ 80,600.00
Ending merchandise inventory	$ 10,400.00
Cost of goods sold		$      70,200.00
Gross profit		$      59,800.00
Operating expense		$      44,200.00
Operating Income		$      15,600.00

.Requirement 2

Cost per brush= $10.80

Working

Cost of goods sold	$ 70,200.00
Units sold	6,500
Unit cost	$          10.80