Question

Income Statement for a Manufacturing Company

Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter.

Finished goods inventory, June 1	$69,100		$19,300		(e)
Cost of goods manufactured	311,000		(c)		67,600
Cost of finished goods available for sale	(a)		$183,400		$106,200
Finished goods inventory, June 30	73,700		38,500		(f)
Cost of goods sold	(b)		(d)		$97,700

a.	$
b.	$
c.	$
d.	$
e.	$
f.	$

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	$132,990
Selling expenses	44,420
Administrative expenses	23,480
Sales	282,950
Finished goods inventory, January 1	31,970
Finished goods inventory, January 31	29,140

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
Finished goods inventory, January 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, January 31
Cost of goods sold	$

Answer 1

Question 1

Missing amounts.

a	$ 380,100
b	$ 306,400
c	$ 164,100
d	$ 144,900
e	$ 38,600
f	$ 8,500

.

Complete statements of cost of goods sold

Finished goods inventory, June 1	$ 69,100	$ 19,300	$ 38,600
Add: Cost of goods manufactured	$ 311,000	$ 164,100	$ 67,600
Cost of finished goods available for sale	$ 380,100	$ 183,400	$ 106,200
Less: Finished goods inventory, June 30	$ 73,700	$ 38,500	$ 8,500
Cost of goods sold	$ 306,400	$ 144,900	$ 97,700

.

Question 2

Bandera Manufacturing Company
Cost of Goods Sold
Jan-31
Finished goods inventory, January 1	$ 31,970
Add: Cost of goods manufactured	$ 132,990
Cost of finished goods available for sale	$ 164,960
Less finished goods inventory, January 31	$ 29,140
Cost of goods sold	$ 135,820

Gross profit = $147,130

Net income = $79,230

Working

Bandera Manufacturing Company
Income statement
Sales revenue	$ 282,950
Cost of goods sold	$ 135,820
Gross profit	$ 147,130
Operating expenses
Selling expense	$ 44,420
Administrative expense	$ 23,480
Total expenses	$ 67,900
Net income	$ 79,230