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	$259,000
Selling expenses	86,520
Administrative expenses	45,740
Sales	551,070
Finished goods inventory, January 1	62,270
Finished goods inventory, January 31	56,760

For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income.

(a)

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	$
Less finished goods inventory, January 31
Cost of goods sold	$

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a. Add the cost of goods manufactured to the beginning finished goods. Subtract the ending finished goods.

(b)

Bandera Manufacturing Company
Gross Profit
January 31
Sales	$
Cost of goods sold
Gross profit	$

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b. Sales minus cost of goods sold equals gross profit.

(c)

Bandera Manufacturing Company
Net Income
January 31
Gross profit		$
Operating expenses:
Selling expenses	$
Administrative expenses
Total operating expenses
Net income		$