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 comma 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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Accounting
Authors: John Hoggett, John Medlin, Lew Edwards, Matthew Tilling, Evelyn Hoggett Hogg
6th Edition
1742466354, 978-1742466354
