Question

Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $189,380 Selling expenses 63,260 Administrative expenses 33,440 Sales 402,930 Finished goods inventory, January 1 45,530 Finished goods inventory, January 31 41,500 For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income. (a) Bandera Manufacturing Company Cost of Goods Sold January 31 $ $

Answer 1

Bandera Manufacturing Company Requirement a Cost of Goods Sold Jan-31 Finished goods inventory, January 1 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, January 31 Cost of goods sold 45530 189380 234910 -41500 193410 Requirement b Gross Profit Jan-31 Sales Cost of goods sold Gross profit 402930 193410 209520 Requirement 209520 Net Income Jan-31 Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income 63260 33440 96700 112820