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13 November, 20:31

The following information is available for Bandera Manufacturing Company for the month ending January 31:

Cost of goods manufactured $216,970

Selling expenses 72,480

Administrative expenses 38,320

Sales 461,640

Finished goods inventory, January 1 52,170

Finished goods inventory, January 31 47,550

For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income

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  1. 13 November, 20:58
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    Answer: Cost of goods sold, gross profit and net income

    Explanation:

    Bandera Manufacturing Company

    Cost of Goods Sold

    Jan-31

    Finished Goods Inventory, January 1 73590

    Add: Cost of Goods Manufactured 306090

    Total Goods Available for Sales 379680

    Less: Finished Goods Inventory, January 31 67080

    Cost of Goods Sold 312600

    b)

    Bandera Manufacturing Company

    Gross Profit

    Jan-31

    Sales 651250

    Less: Cost of Goods Sold 312600

    Gross Profit 338650

    c)

    Bandera Manufacturing Company

    Net Income

    Jan-31

    Gross Profit 338650

    Operating Expenses:

    Selling expenses 102250

    Administrative expenses 54050

    Less: Total Operating Expense 156300

    Net Income 182350

    2)

    a)

    Digital Vibe Manufacturing Company

    Income Statement

    For the Month Ended January 31

    Sales 232300

    Less: Cost of goods sold 103400

    Gross profit 128900

    Less: Operating expense

    Selling expense 59400

    Administrative expense 26100

    Total operating expense 85500

    Net income 43400

    b)

    Particulars Amount ($)

    Materials purchased 48300

    Less: Materials used for production 37200

    Ending balance of materials 11100

    Particulars Amount ($)

    Materials used for production 37200

    Add: Direct labor wages 55500

    Add: Factory overhead 78200

    Total cost of manufacturing 170900

    Less: Transferred to finished goods 129900

    Ending balance of work-in-process 41000

    Particulars Amount ($)

    Transfer from work-in-process 129900

    Less: Cost of goods sold 103400

    Ending balance of finished goods 26500
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