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The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $229,440 Selling expenses 76,640 Administrative expenses 40,520 Sales 488,160 Finished goods inventory, January 1 55,160 Finished goods inventory, January 31 50,280 For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income.

The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $229,440 Selling expenses 76,640 Administrative expenses 40,520 Sales 488,160 Finished goods inventory, January 1 55,160 Finished goods inventory, January 31 50,280 For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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11. The following information is available for Bandera Manufacturing Company for the month ending January 31:

Cost of goods manufactured $229,440
Selling expenses 76,640
Administrative expenses 40,520
Sales 488,160
Finished goods inventory, January 1 55,160
Finished goods inventory, January 31 50,280

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

### (b) Bandera Manufacturing Company Gross Profit Statement for January 31 - **Sales:** $488,160 - **Cost of Goods Sold:** [Blank space for input] - **Gross Profit:** [Blank space for calculation] ### (c) Bandera Manufacturing Company Net Income Statement for January 31 - **Gross Profit:** [Blank space for input] - **Operating Expenses:** - **Selling Expenses:** [Blank space for input] - **Administrative Expenses:** [Blank space for input] - **Total Operating Expenses:** [Blank space for calculation] - **Net Income:** [Blank space for calculation] In these sections, there are placeholders for entering specific financial values. The Gross Profit is calculated by subtracting the Cost of Goods Sold from Sales. Net Income is determined by subtracting Total Operating Expenses from Gross Profit.
Transcribed Image Text:### (b) Bandera Manufacturing Company Gross Profit Statement for January 31 - **Sales:** $488,160 - **Cost of Goods Sold:** [Blank space for input] - **Gross Profit:** [Blank space for calculation] ### (c) Bandera Manufacturing Company Net Income Statement for January 31 - **Gross Profit:** [Blank space for input] - **Operating Expenses:** - **Selling Expenses:** [Blank space for input] - **Administrative Expenses:** [Blank space for input] - **Total Operating Expenses:** [Blank space for calculation] - **Net Income:** [Blank space for calculation] In these sections, there are placeholders for entering specific financial values. The Gross Profit is calculated by subtracting the Cost of Goods Sold from Sales. Net Income is determined by subtracting Total Operating Expenses from Gross Profit.
### Bandera Manufacturing Company #### (a) Cost of Goods Sold ##### January 31 - **Finished goods inventory, January 1**: $55,160 - **Cost of goods manufactured**: $229,440 - **Cost of finished goods available for sale**: (Blank space for calculation) - **Less finished goods inventory, January 31**: $50,280 - **Cost of goods sold**: (Blank space for calculation) **Feedback** - **Check My Work** - **a.** Add the cost of goods manufactured to the beginning finished goods. Subtract the finished goods inventory at the end. #### (b) Gross Profit ##### January 31 - **Sales**: $488,160 - **Cost of goods sold**: (Blank space for calculation) - **Gross profit**: (Blank space for calculation) ### Explanation of Calculation Process 1. **Cost of Finished Goods Available for Sale**: Calculated by adding the "Finished goods inventory, January 1" and the "Cost of goods manufactured." 2. **Cost of Goods Sold**: Calculated by subtracting the "Less finished goods inventory, January 31" from the "Cost of finished goods available for sale." 3. **Gross Profit**: Determined by subtracting the "Cost of goods sold" from "Sales." This structure showcases how the Bandera Manufacturing Company calculates the cost of goods sold and gross profit. Understanding these calculations is critical for analyzing the company's profitability and inventory management efficiency.
Transcribed Image Text:### Bandera Manufacturing Company #### (a) Cost of Goods Sold ##### January 31 - **Finished goods inventory, January 1**: $55,160 - **Cost of goods manufactured**: $229,440 - **Cost of finished goods available for sale**: (Blank space for calculation) - **Less finished goods inventory, January 31**: $50,280 - **Cost of goods sold**: (Blank space for calculation) **Feedback** - **Check My Work** - **a.** Add the cost of goods manufactured to the beginning finished goods. Subtract the finished goods inventory at the end. #### (b) Gross Profit ##### January 31 - **Sales**: $488,160 - **Cost of goods sold**: (Blank space for calculation) - **Gross profit**: (Blank space for calculation) ### Explanation of Calculation Process 1. **Cost of Finished Goods Available for Sale**: Calculated by adding the "Finished goods inventory, January 1" and the "Cost of goods manufactured." 2. **Cost of Goods Sold**: Calculated by subtracting the "Less finished goods inventory, January 31" from the "Cost of finished goods available for sale." 3. **Gross Profit**: Determined by subtracting the "Cost of goods sold" from "Sales." This structure showcases how the Bandera Manufacturing Company calculates the cost of goods sold and gross profit. Understanding these calculations is critical for analyzing the company's profitability and inventory management efficiency.
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