Answer:
Bandera Manufacturing Company
a) Cost of goods sold:
Finished goods inventory, January 1 31,700
Cost of goods manufacturing 131,860
Finished goods inventory, January 31 28,900
Cost of goods sold $134,660
b) Gross profit
Sales $280,560
Cost of goods sold 134,660
Gross profit $145,900
c) Net Income
Gross profit $145,900
Selling expenses 44,050
Administrative expenses 23,290
Net Income $78,560
Digital Vibe Manufacturing Company
Digital Vibe Manufacturing Company:
Sales Revenue $232,300
Cost of goods sold 103,400
Gross profit 128,900
Selling expenses 59,400
Administrative exp. 26,100
Net Income $43,400
a. Income Statement for the month ended January 31:
Operating expenses:
Selling expenses 59,400
Administrative exp. 26,100
Total operating expenses 85,500
b. Digital Vibe Manufacturing Company
Inventory Balances For the Month Ended January 31
Inventory balances on January 31:
Raw materials 11,100
Work in process 41,000
Finished goods 26,500
Explanation:
a) Data and Calculations:
Digital Vibe Manufacturing Company
Purchases $48,300
less Inventory 11,100
Cost of materials used 37,200
Direct labor 55,500
Factory overhead 78,200
Cost of manuf. 170,900
Transferred to
finished goods 129,900
WIP inventory 41,000
Transferred to
finished goods 129,900
Cost of goods sold 103,400
Inventory of finished 26,500
Selling expenses 59,400
Administrative exp. 26,100
