Question

Revenue ​$460,000 beginning inventory of direct​ materials, january​ 1, 2015 ​30,000 purchases of direct materials ​15,800 ending inventory of direct​ materials, december​ 31, 2015 ​16,000 direct manufacturing labor ​26,000 indirect manufacturing costs ​42,000 beginning inventory of finished​ goods, january​ 1, 2015 ​45,000 cost of goods manufactured ​97,800 ending inventory of finished​ goods, december​ 31, 2015 ​41,000 operating costs ​158,000 what is​ expert's operating​ income?

Answer 1

Answer: Expert's Operating Income = $200,200

Explanation: Expert has the following information from the Profit and Loss account:

Revenue: $460,000

Beginning Inventory of finished goods as on January 1, 2015: $45,000

Cost of Goods Manufactured: $97,800

Ending Inventory of Finished Goods as on December 31,2015 : $41,000

Operating Costs: $158,000

Operating Income = Revenue - (Beginning Inventory of Finished Goods + Cost of Goods Manufactured - Ending Inventory of Finished Goods) - Operating Costs

By Input the above variables in the formula,

Operating Income = $460,000 - ($45,000 + $97,800 - $41,000) - $158,000

Operating Income = $200,200

Therefore, the Expert's Operating Income is $200,200