Expert Manufacturing reported the following: Revenue $460,000 beginning inventory of direct materials, january 1, 2015 30,000 purchases of direct materials 15,800 ending inventory of direct materials, december 31, 2015 16,000 direct manufacturing labor 26,000 indirect manufacturing costs 42,000 beginning inventory of finished goods, january 1, 2015 45,000 cost of goods manufactured 97,800 ending inventory of finished goods, december 31, 2015 41,000 operating costs 158,000 what is expert's operating income?

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Business

Paris Martinez

27 September, 05:54

Expert Manufacturing reported the following: Revenue $460,000 beginning inventory of direct materials, january 1, 2015 30,000 purchases of direct materials 15,800 ending inventory of direct materials, december 31, 2015 16,000 direct manufacturing labor 26,000 indirect manufacturing costs 42,000 beginning inventory of finished goods, january 1, 2015 45,000 cost of goods manufactured 97,800 ending inventory of finished goods, december 31, 2015 41,000 operating costs 158,000 what is expert's operating income?

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Answers (1)

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Zachery Cowan · Answer 1

Net operating profit = 200,200

Explanation:

Giving the following information:

Revenue $460,000

cost of goods manufactured 97,800

beginning inventory of finished goods, January 1, 2015, 45,000

ending inventory of finished goods, December 31, 2015, 41,000

operating costs 158,000

First, we need to calculate the cost of goods sold:

COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS = 45000 + 97800 - 41000 = $101,800

Now, we can structure the income statement:

Revenues = 460,000

COGS = 101,800

Gross profit = $358,200

Operating costs 158,000

Net operating profit = 200,200