Manufacturing Firm Income Statement

Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total cost of $433,000. Each stick sold at a price of $400. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price, and other selling expense of $65,000. Administrative expense totaled $53,800.

1. Prepare an income statement for Slapshot for the month of June

Sales revenue:

Cost of goods sold:

Gross margin:

Sellong expense:

Commisions:

Fixed selling expense:

Administrative expense:

Operating income:

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4 October, 23:10

Manufacturing Firm Income Statement

Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total cost of $433,000. Each stick sold at a price of $400. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price, and other selling expense of $65,000. Administrative expense totaled $53,800.

1. Prepare an income statement for Slapshot for the month of June

Sales revenue:

Cost of goods sold:

Gross margin:

Sellong expense:

Commisions:

Fixed selling expense:

Administrative expense:

Operating income:

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Answers (1)

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Kaylie · Answer 1

Operating income = $125,000

Explanation:

Income statement

Particular Amount

Sales revenue (1,880 x $400) $752,000

LESS: Cost of goods sold $433,000

Gross margin $319,000

LESS: Selling expense $65,000

Commissions ($752,000 x 10%) $75,200

Administrative expense $53,800

Operating income $125,000