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	$211,540
Selling expenses	70,660
Administrative expenses	37,360
Sales	450,090
Finished goods inventory, January 1	50,860
Finished goods inventory, January 31	46,360

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
	$
	$
	$

(b)

Bandera Manufacturing Company
Gross Profit
January 31
	$
	$

(c)

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

Answer 1

(a)	Bandera Manufacturing Company
	Cost of Goods Sold
	January 31
	Finished goods inventory, January 1	$     50,860
Add:	Cost of Goods manufactured	$ 2,11,540
	Cost of finished goods available for sale	$ 2,62,400
Less:	Finished goods inventory, January 31	$     46,360
	Cost of Goods Sold	$ 2,16,040
(b)	Bandera Manufacturing Company
	Gross Profit
	January 31
	Sales	$ 4,50,090
Less:	Cost of Goods Sold	$ 2,16,040
	Gross Profit	$ 2,34,050
(c)	Bandera Manufacturing Company
	Net Income
	January 31
	Gross Profit		$ 2,34,050
Less:	Operating Expenses:
	Selling expenses	$     70,660
	Administrative expenses	$     37,360
	Total Operating Expenses		$ 1,08,020
	Net Income		$ 1,26,030