Answer:
Net income= $21,480
Explanation:
Giving the following information:
Raw materials used $ 17,600
Direct labor wages 33,600
Depreciation on production equipment 3,060
Rent on manufacturing facilities 4,060
Total manufacturing cost= 58320
Sales salaries and commissions 25,600
Administrative supplies and utilities 5,600
Sales revenue 111,000
Units produced 4,600
Units sold 4,600
In this case total manufacturing cost= cost of goods sold.
Income statement:
Sales= 111,000
COGS= 58320 (-)
Gross profit= 52,680
Sales salaries and commissions 25,600 (-)
Administrative supplies and utilities 5,600 (-)
Net income= $21,480