Question

The cost accountant for Angie's Apparel has compiled the following information for last month's operations: Administrative costs Merchandise inventory, July 1 Merchandise inventory, July 31 Merchandise purchases Sales commissions Sales revenue Store rent Store utilities Transportation-in costs $ 73,600 25,000 24,000 640,000 43,900 948,000 13,700 2,150 4,250 Required Prepare an income statement with a supporting cost of goods sold statement. ANGIE'S APPAREL Income Statement For the Month Ended July 31 ANGIE'S APPAREL Cost of Goods Sold Statement For the Month Ended July 31 Total cost of goods purchased Cost of goods sold

Answer 1

ANGIE'S APPAREL
Income Statement
For the Month Ended July 31
Sales revenue		948,000
Cost of goods sold		645,250
Gross margin		302,750
Marketing and administrative costs		133,350
(73,600+43,900+13,700+2,150)
Operating profit		169,400
ANGIE'S APPAREL
Cost of Goods Sold Statement
For the Month Ended July 31
Merchandise inventory, July 1		25,000
Merchandise purchases	640,000
Transportation in costs	4,250
Total cost of goods purchased		644,250
Cost of goods available for sale		669,250
Merchandise inventory, July 31		24,000
Cost of goods sold		645,250