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	$210,730
Selling expenses	70,390
Administrative expenses	37,210
Sales	448,370
Finished goods inventory, January 1	50,670
Finished goods inventory, January 31	46,180

a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold.

Bandera Manufacturing Company
Cost of Goods Sold
January 31
	$
	$
	$

b. For the month ended January 31, determine Bandera Manufacturing’s gross profit.

Bandera Manufacturing Company
Gross Profit
January 31
	$
	$

c. For the month ended January 31, determine Bandera Manufacturing’s net income.

Bandera Manufacturing Company
Net Income
January 31
		$
Operating expenses:
	$
Total operating expenses
		$

Answer 1

(a) Bandera Manufacturing Company Cost of Goods Sold Jan-31 Finished goods inventory, January 1 $50,670 Add: Cost of Goods manufactured $2,10,730 Cost of finished goods available for sale $2,61,400 Less: Finished goods inventory, January 31 $46,180 Cost of Goods Sold $2,15,220 (b) Bandera Manufacturing Company Gross Profit Jan-31 Sales $4,48,370 Less: Cost of Goods Sold $2,15,220 Gross Profit $2,33,150 (c) Bandera Manufacturing Company Net Income Jan-31 Gross Profit $2,33,150 Less: Operating Expenses: Selling expenses $70,390 Administrative expenses $37,210 Total Operating Expenses $1,07,600 Net Income $1,25,550