Question

# Cost of Goods Sold, Profit Margin, and Net Income for a Manufacturing Company The following information...

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

The following information is available for Crouching Alligator Manufacturing Company for the month ending October 31, 2016: Cost of goods manufactured \$450,000 Selling expenses 144,500 Administrative expenses 75,900 Sales 911,250 Finished goods inventory, October 1 101,250 Finished goods inventory, October 31 93,800

1. Cost of Goods Sold = \$4,57,450

Finished goods inventory, October 1 \$1,01,250

Add : Cost of goods manufactured \$4,50,000

Cost of finished goods available for sale \$5,51,250

Less : Finished goods inventory, October 31       \$93,800

Cost of Goods Sold \$4,57,450

2. Profit Margin = \$4,53,800

Sales \$9,11,250

Less : Cost of goods sold \$4,57,450

Gross Profit \$4,53,800

3.Net Income = \$2,33,400

Gross Profit \$4,53,800

Operating Expenses

Selling expenses                       \$1,44,500

Net Income \$2,33,400