Question

Using the information below, calculate net income for the period:

Answer 1

Answer:

See explanation

Explanation:

The correct choice is not available : Net Income is $511,000

We determined this as follows :

Income Statement for the ended December 31  

Sales                                                                                      $1,323,000

Less Cost of Sales

Opening Finished Goods Inventory               $55,000

Add Cost of goods manufactured                $559,000

Less Ending Finished Goods Inventory        ($60,000)     ($554,000)

Gross Profit                                                                             $769,000

Less Expenses

Operating expenses                                                             ($258,000)

Net Income                                                                               $511,000