Question

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

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

Cost of goods manufactured	$314,150
Selling expenses	104,940
Administrative expenses	55,480
Sales	668,410
Finished goods inventory, January 1	75,530
Finished goods inventory, January 31	68,850

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

(a)

Bandera Manufacturing Company
Cost of Goods Sold
January 31
	$
	$
	$

(b)

Bandera Manufacturing Company
Gross Profit
January 31
	$
	$

(c)

Bandera Manufacturing Company
Net Income
January 31
		$
Operating expenses:
	$
Total operating expenses
		$

Answer 1

Ans. A	Bandera Manufacturing Company
	Cost of Goods Sold
	31-Jan
	Particulars	Amount
	Cost of goods manufactured	$314,150
	Add: Beginning finished goods inventory	$75,530
	Cost of goods available for sale	$389,680
	Less: Ending finished goods inventory	-$68,850
	Cost of goods sold	$320,830
Ans. B	Bandera Manufacturing Company
	Gross Profit
	31-Jan
	Particulars	Amount
	Sales	$668,410
	Less: Cost of goods sold	-$320,830
	Gross profit	$347,580
Ans. C	Bandera Manufacturing Company
	Net Income
	31-Jan
	Particulars	Amount	Amount
	Gross profit		$347,580
	Less: Operating expenses:
	Selling expenses	$104,940
	Administrative expenses	$55,480
	Total operating expenses		$160,420
	Net Income		$187,160