Johnson & Johnson:

• December 2026 Costs:
  • Direct materials: $1,020,000
  • Direct labor: $820,000
  • Factory overheads: $780,000
  • Selling expenses: $440,000
  • Administrative expenses: $400,000
  • Units produced and sold: 86,000 units
  • Sales revenue: $4,300,000

Requirements:

1. Prepare a cost of goods manufactured statement.
2. Calculate the cost of goods sold.
3. Compute the gross profit.
4. Determine the net profit.