The following incomplete income statement information is available for Sawchule Ltd. for 2012: Sales ......................................................$560,000 Beginning inventory
Question:
The following incomplete income statement information is available for Sawchule Ltd. for 2012:
Sales ......................................................$560,000
Beginning inventory of finished goods ...............270,000
Cost of goods manufactured ...........................260,000
Net income ................................................50,000
Non-manufacturing costs ...............................170,000
The beginning inventory of work in process was $110,000 and there was no ending inventory of work in process.
Instructions
(a) Calculate the gross profit in 2012.
(b) Calculate the cost of goods sold in 2012.
(c) Calculate the cost of the ending inventory of finished goods in 2012.
(d) Calculate the total manufacturing cost in 2012.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
a Let GP Gross profit GP nonmanufacturing costs net inco...View the full answer
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
