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

Cost of goods manufactured $216,970

Selling expenses 72,480

Administrative expenses 38,320

Sales 461,640

Finished goods inventory, January 1 52,170

Finished goods inventory, January 31 47,550

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

Answer: Cost of goods sold, gross profit and net income

Explanation:

Bandera Manufacturing Company

Cost of Goods Sold

Jan-31

Finished Goods Inventory, January 1 73590

Add: Cost of Goods Manufactured 306090

Total Goods Available for Sales 379680

Less: Finished Goods Inventory, January 31 67080

Cost of Goods Sold 312600

b)

Bandera Manufacturing Company

Gross Profit

Jan-31

Sales 651250

Less: Cost of Goods Sold 312600

Gross Profit 338650

c)

Bandera Manufacturing Company

Net Income

Jan-31

Gross Profit 338650

Operating Expenses:

Selling expenses 102250

Administrative expenses 54050

Less: Total Operating Expense 156300

Net Income 182350

2)

a)

Digital Vibe Manufacturing Company

Income Statement

For the Month Ended January 31

Sales 232300

Less: Cost of goods sold 103400

Gross profit 128900

Less: Operating expense

Selling expense 59400

Administrative expense 26100

Total operating expense 85500

Net income 43400

b)

Particulars Amount ($)

Materials purchased 48300

Less: Materials used for production 37200

Ending balance of materials 11100

Particulars Amount ($)

Materials used for production 37200

Add: Direct labor wages 55500

Add: Factory overhead 78200

Total cost of manufacturing 170900

Less: Transferred to finished goods 129900

Ending balance of work-in-process 41000

Particulars Amount ($)

Transfer from work-in-process 129900

Less: Cost of goods sold 103400

Ending balance of finished goods 26500