Question

Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company

The following information is available for Gonzalez Manufacturing Company for the month ending July 31, 2016:

Cost of goods manufactured	$254,840
Selling expenses	85,130
Administrative expenses	45,000
Sales	542,210
Finished goods inventory, July 1	61,270
Finished goods inventory, July 31	55,850

For the month ended July 31, 2016, determine Gonzalez's (a) cost of goods sold, (b) gross profit, and (c) net income.

Labels & Amount descriptions

Finished goods inventory, July 1, 2016

Finished goods inventory, July 31, 2016

Sales

Selling Expenses

Cost of finished goods available for sale

Cost of goods manufactured

Cost of goods sold

Gross profit

Administrative expenses

Net Income

Less administrative expenses

Less Finished goods inventory, July 1, 2016

Less Finished goods inventory, July 31, 2016

1. (a)

   Gonzalez Manufacturing Company
   Cost of Goods Sold
   July 31, 2016
   	$
   	$
   	$

   (b)

   Gonzalez Manufacturing Company
   Gross Profit
   July 31, 2016
   	$
   	$

   (c)

   Gonzalez Manufacturing Company
   Net Income
   July 31, 2016
   		$_________
   Operating expenses:
   	$ ______
   	______
   Total operating expenses		______
   		$______

Answer 1

Gonzalez Manufacturing Company
Cost of Goods Sold
July 31, 2016
Finished goods inventory, July 1, 2016       (a)	$61,270
Cost of Goods Manufactured                       (b)	$254,840
Cost of finished goods available for sale     (a + b)	$316,110
Less: Finished goods inventory, July 31, 2016	$55,850
Cost of goods sold	$260,260

.

.

Gonzalez Manufacturing Company
Gross Profit
July 31, 2016
Sales	$542,210
Cost of Goods Sold	$260,260
Gross Profit               [Sales - Cost of goods sold]	$281,950

.

.

Gonzalez Manufacturing Company
Net Income
July 31, 2016
Gross profit		$281,950
Operating expenses:
Selling expenses	$85,130
Administrative expenses	$45,000
Total operating expenses		$130,130
Net Income          [Gross profit - Total operating expenses]		$151,820