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81) Mason Cabinet Company sells standard kitchen cabinets. The following information summarizes Mason's operating activities for the year: Selling and Administrative Expenses $42,750 Purchases 85,700
81) Mason Cabinet Company sells standard kitchen cabinets. The following information summarizes Mason's operating activities for the year:
Selling and Administrative Expenses | $42,750 |
Purchases | 85,700 |
Sales Revenue | 154,500 |
Merchandise Inventory, January 1 | 12,500 |
Merchandise Inventory, December 31 | 16,200 |
Mason sold 950 cabinets during the year.
Calculate the operating income for the year.
Compute the unit cost for one cabinet (Round to two decimal places.)
Answer: Operating income for the year
Mason Cabinet Company
Income Statement
Year Ended December 31, 2015
Sales Revenue | ________ | |
Cost of Goods Sold: | ||
Beginning Merchandise Inventory | ________ | |
Purchases | ________ | |
Cost of Goods Available for Sale | _______ | |
Ending Merchandise Inventory | (______) | |
Cost of Goods Sold | ________ | |
Gross Profit | ________ |
Selling and Administrative Expenses | ________ | |
Operating Income | ___________ |
HINT: Unit cost for one cabinet = Cost of goods gold / Total units sold
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