Problem 10

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 Selling expenses Administrative expenses Sales Finished goods inventory, January 1 Finished goods inventory, January 31 $4,490,000 530,000 340,000 6,600,000 880,000 775,000 (a) For the month ended January 31, determine Bandera's cost of goods sold Bandera Manufacturing Company Cost of Goods Sold (b) For the month ended January 31, determine Bandera's gross profit. Bandera Manufacturing Company Gross Profit (c) For the month ended January 31, determine Bandera's net income. Bandera Manufacturing Company Net Income