Question

1. Our company is a manufacturer and has the following data available for the current year:...

1.

Our company is a manufacturer and has the following data available for the current year:

  • sales, $550,000;
  • cost of goods manufactured, $250,000;
  • finished goods beginning inventory, $20,000; and
  • finished goods ending inventory, $30,000.

What is the amount reported on the income statement for gross profit?

a. $260,000

b. $240,000

c. $290,000

d.$310,000

2. Our company is a manufacturer and has the following data available for the current year:

  • sales, $550,000;
  • sales discounts, $20,000;
  • sales returns and allowances, $15,000; and
  • cost of goods sold, $200,000.

What is the amount reported on the income statement for gross profit?

a. $530,000

b. $515,000

c. $330,000

d. $315,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Computation of Gross Profit
Sales 550000
Less: Cost of goods sold
Opening Finished goods 20000
Add: Cost of goods manufactured 250000
Less: Closing Finished goods 30000 240000
Gross Profit 310000
Option D is the correct answer
Computation of Gross Profit
Sales 550000
Less:Sale Disounts 20000
Less: Sales returns and allowances 15000 35000
Net sales 515000
Less Cost of goods sold 200000
Gross Profit 315000
Option D is the correct answer
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Income statement data for Boone Company for two recent years ended December 31, are as follows:...
Income statement data for Boone Company for two recent years ended December 31, are as follows:     Current Year     Previous Year Sales $396,000 $330,000 Cost of goods sold 330,400 280,000 Gross profit $65,600 $50,000 Selling expenses $17,600 $16,000 Administrative expenses 16,520 14,000 Total operating expenses $34,120 $30,000 Income before income tax $31,480 $20,000 Income tax expenses 12,600 8,000 Net income $18,880 $12,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared...
Vibrant Company had $960,000 of sales in each of Year 1, Year 2, and Year 3,...
Vibrant Company had $960,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $530,000 in each of those years. It also maintained a $260,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $240,000 rather than the correct $260,000. Required: 1. Determine...
The following information is available for Marks Company at December 31, 2017: 1. Inventory balance Beginning...
The following information is available for Marks Company at December 31, 2017: 1. Inventory balance Beginning of Year End of Year Finished Goods $14,000 $10,000 Work in Process 6,000 12,000 Raw Materials 10,300 6,500 2. Debit postings to Work in Process Inventory during the year were: Direct materials $90,000 Direct labor 60,000 Manufacturing overhead applied 75,000 3. Sales totaled $310,000 for the year. make an income statement for the following data
The following information is available for our company for the current year: operating income, $75,000; average...
The following information is available for our company for the current year: operating income, $75,000; average total assets, $500,000; net sales, $750,000; and required rate of return, 12%. Calculate the profit margin to two decimal places. A) 6.67% B) 10.00% C) 15.00% D) 16.67% The following information is available for our company for the current year: operating income, $75,000; average total assets, $500,000; net sales, $750,000; and required rate of return, 12%. Calculate the asset turnover to two decimal places....
The following information is available for Aikman Company. 1- Compute cost of goods manufactured 2- Prepare...
The following information is available for Aikman Company. 1- Compute cost of goods manufactured 2- Prepare an income statement through gross profit. 3- Show the presentation of the ending inventories on the December 31, 2017, balance sheet January 1, 2017 2017 December 31, 2017 Raw materials inventory $22,050 $31,590 Work in process inventory 16,060 18,160 Finished goods inventory 29,470 23,990 Materials purchased $155,750 Direct labor 221,530 Manufacturing overhead 184,450 Sales revenue 905,810
Pharoah Company reported these income statement data for a 2-year period. 2022 2021 Sales revenue $261,700...
Pharoah Company reported these income statement data for a 2-year period. 2022 2021 Sales revenue $261,700 $202,620 Beginning inventory 40,400 30,090 Cost of goods purchased 191,760 177,910 Cost of goods available for sale 232,160 208,000 Less: Ending inventory 50,730 40,400 Cost of goods sold 181,430 167,600 Gross profit $80,270 $35,020 Pharoah Company uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, is overstated by...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years...
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows:     Current Year     Previous Year Sales $550,000 $440,000 Cost of goods sold 467,400 380,000 Gross profit $82,600 $60,000 Selling expenses $24,150 $21,000 Administrative expenses 20,910 17,000 Total operating expenses $45,060 $38,000 Income before income tax $37,540 $22,000 Income tax expenses 15,000 8,800 Net income $22,540 $13,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease)...
The following information is available for All-True Window Company January 1, 2017 2017 December 31, 2017...
The following information is available for All-True Window Company January 1, 2017 2017 December 31, 2017 Raw materials inventory 21,000 30,000 Work in process inventory 13,500 17,200 Finished goods inventory 27,000 21,000 Materials purchased 650,000 Direct labor 300,000 Manufacturing overhead 450,000 Sales revenue 1,625,000 a. Determine the cost of materials used during the year? b. Prepare Cost of Goods Manufactured statement for the year ended December 31, 2017. c. Prepare income statement through gross profit for the year ended December...
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020: 2021 2020 Sales...
Anthony Thomas Candies (ATC) reported the following financial data for 2021 and 2020: 2021 2020 Sales $ 317,000 $ 290,000 Sales returns and allowances 8,900 4,300 Net sales $ 308,100 $ 285,700 Cost of goods sold: Inventory, January 1 63,000 26,000 Net purchases 134,000 144,000 Goods available for sale 197,000 170,000 Inventory, December 31 63,000 63,000 Cost of goods sold 134,000 107,000 Gross profit $ 174,100 $ 178,700 The average days inventory for ATC (rounded) for 2021 is: (Round your...
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 Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $4,490,000 Selling expenses 530,000 Administrative expenses 340,000 Sales 6,600,000 Finished goods inventory, January 1 880,000 Finished goods inventory, January 31 775,000 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....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT