Accounting, IS & GOODS SOLD?

Managerial Accounting, INCOME Statement Horrors!?

Hello Yahoo!

I Am taking an accounting class and have homework to do, I honestly can not even start, I have been sitting here for an hour trying to go through the book and get help from other questions, nothing seems to help, If you can give me a start on the Income Statement here is a problem and hopefully if someone answers I might be Able to finish the rest, thanks in advance!

Prepare An Income Statement:

Sales Commissions--- $12,000

Sales Revenue ----------120,000

Research & Develop----17,000 ( Is this a Variable cost, meaning it may be an overhead manufacturing)

Finished Goods, inventory, May 1 --- 7,500

Working in progress inventory May 1-- 9,000

Finished good/ INV April 31------------ 6,000

Work In Progress/ INV April 31-------11,000

Cost of goods INV/ manufactured ---52,000

Thanks very MUCH!!!

Pablo

2 Answers

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  • JKRB
    Lv 7
    8 years ago
    Favorite Answer

    Calculate cost of goods sold.

    Finished Goods, inventory, May 1 --- 7,500

    Plus:

    Cost of goods INV/ manufactured ---52,000

    = Goods available for sale -- . . . . . 59,500

    Less:

    Finished good/ INV April 31------------ 6,000

    = Cost of goods sold --. . . . . . . . . 53,500

    Income statement

    Sales revenue . . . . . . . . . $120,000

    Cost of goods sold . . . . . . . 53,500

    Gross profit . . . . . . . . . . . . . . . . . . . $66,500

    Operating expenses

    Sales Commissions, , , , , , ,12,000

    Research & Develop. . . . . . .17,000

    Total operating expenses . . . . . . . . . . 29,000

    Net Income . . . . . . . . . . . . . . . . . . . $37,500

    Source(s): Accounting Fan
  • Anonymous
    4 years ago

    hi TC, commencing up inventory 7,000 plus Purchases + fifty two,000 minus inventory - 6,000 7,000 + fifty two,000 - 6,000 = $fifty 3,000 The debts payable strategies is a "pink herring", because it has no longer something to do with the valuation of inventories. The valuation of the inventories has already been pronounced interior the commencing up and ending balances - so debts payable is neither right here nor there in this calculation. There are quite a few information on the thank you to calculate COGS yet between the undemanding techniques is to initiate with the commencing up inventory for the era and upload the total quantity of purchases made during the era, and then deducting the ending inventory. This calculation supplies the total quantity of inventory (the fee of this inventory) bought via the organization during the era. subsequently, if a organization starts off with $10 million in inventory, makes $2m in purchases and ends the era with $9m in inventory, the organization's fee of goods for the era may well be $3m ($10m + $2m - $9m). wish this helps, good luck!

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