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7 November, 16:57

Crystal, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. The company has provided the following information:Sales Revenue $593,000Purchases (excluding Freight In) 304,000Selling and Administrative Expenses 68,000Freight In 14,000Beginning Merchandise Inventory 46,000Ending Merchandise Inventory 42,000What is the operating income for the year? (Round your answer to the nearest whole dollar.)

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  1. 7 November, 20:17
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    Answer: $203,000

    Explanation:

    Cost of goods sold:

    = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory

    = $46,000 + $304,000 + $14,000 - $ 42,000

    = $322,000

    Operating Income:

    = Sales Revenue - Cost of Goods Sold - selling and administration expenses

    = $593,000 - $322,000 - 68,000

    = $203,000
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