Question
Andromeda Manufacturing Company has the following data in the ledger for the year ended December 31, 2022: Items Amount (in $) Beginning, RM inventory, January
Andromeda Manufacturing Company has the following data in the ledger for the year ended December 31, 2022:
| Items | Amount (in $) |
| Beginning, RM inventory, January 01, 2022 | 11,000 |
| Ending, RM inventory, December 31, 2022 | 8,000 |
| Beginning, WIP inventory, January 01, 2022 | 6,000 |
| Ending, WIP inventory, December 31, 2022 | 7,000 |
| Beginning, FG inventory, January 01, 2022 | 22,000 |
| Cost of goods available for sale | 126,000 |
| Ending, FG inventory, December 31, 2022 | 18,000 |
| Operating costs | 70,000 |
| Purchases of direct materials | 73,000 |
| Direct labor cost | 9,000 |
| Indirect labor | 7,000 |
| Supplies | 2,000 |
| Heat, light, and power | 5,000 |
| Depreciation - plant building | 2,000 |
| Depreciation - plant equipment | 3,000 |
| Miscellaneous | 1,000 |
| Revenue | 210,000 |
Answer the following questions using commas to represent thousands and without the dollar sign and decimal places:
1. How much is the CGM?
2. How much is the CGS?
3. How much is the gross margin?
4. How much is the operating income?
5. How much is the operating income when CGS is adjusted to $140,000?
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1 16000 2 126000 3 84000 4 14000 5 26000 Explanation The CGM Cost of Goods Manuf...
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
