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	$165,390
Selling expenses	55,250
Administrative expenses	29,210
Sales	351,890
Finished goods inventory, January 1	39,760
Finished goods inventory, January 31	36,240

a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold.

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

b. For the month ended January 31, determine Bandera Manufacturing’s gross profit.

Bandera Manufacturing Company
Gross Profit
January 31
	$
	$

c. For the month ended January 31, determine Bandera Manufacturing’s net income.

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

Answer 1

Answer-a)-

BANDERA MANUFACTURING COMPANY
COST OF GOODS SOLD
JANUARY 31
PARTICULARS		Amount
		$
Beginning finished goods inventory, January 1		39760
Add-Cost of goods manufactured		165390
Cost of goods available for sale		205150
Less- Ending finished goods inventory, January 31	36240
Cost of goods sold		168910

b)-

BANDERA MANUFACTURING COMPANY
GROSS PROFIT
JANUARY 31
PARTICULARS		Amount
		$
Sales		351890
Less- Cost of goods sold		168910
Gross profit		182980

c)-

BANDERA MANUFACTURING COMPANY
NET INCOME
JANUARY 31
PARTICULARS		Amount
		$
Gross profit		182980
Less- Opertaing expenses
Selling expenses	55250
Administrative expenses	29210
Total operating expenses		84460
Net income		98520