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 $4,490,000

Selling expenses 530,000

Administrative expenses 340,000

Sales 6,600,000

Finished goods inventory, January 1 880,000

Finished goods inventory, January 31 775,000

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$

Cost of goods manufactured

Cost of finished goods available for sale$

Finished goods inventory, January 31

Cost of goods sold$

b.For the month ended January 31, determine Bandera Manufacturing's gross profit.

Bandera Manufacturing CompanyGross ProfitJanuary 31

Sales$

Cost of goods sold

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$