Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $247,480 Selling expenses 82,670 Administrative expenses 43,700 Sales 526,560 59,500 Finished goods inventory, January 1 Finished goods inventory, January 31 54,240 a. For the month ended January 31, determine Bandera Manufacturing's cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 Finished goods inventory, January 1 59,500 Cost of goods manufactured 247,480 Cost of finished goods available for sale 306,980 Finished goods inventory, January 31 54,240 Cost of goods sold 252,740 Feedback Check My Work a. Add the cost of goods manufactured to the beginning finished goods. Subtract the ending finished goods. b. For the month ended January 31, determine Bandera Manufacturing's gross profit. Bandera Manufacturing Company Gross Profit January 31 Sales $1 Cost of goods sold Gross profit $ Feedback Check My Work b. Sales minus cost of goods sold equals gross profit. C. For the month ended January 31, determine Bandera Manufacturing's net income. Bandera Manufacturing Company Net Income January 31 Gross profit Operating expenses: Selling expenses Administrative expenses Total operating expenses Net income Feedback Check My Work c. Gross profit minus operating expenses equals net income