Question

Expert Manufacturing reported the​ following: Revenue ​$460,000 beginning inventory of direct​ materials, january​ 1, 2015 ​30,000 purchases of direct materials ​15,800 ending inventory of direct​ materials, december​ 31, 2015 ​16,000 direct manufacturing labor ​26,000 indirect manufacturing costs ​42,000 beginning inventory of finished​ goods, january​ 1, 2015 ​45,000 cost of goods manufactured ​97,800 ending inventory of finished​ goods, december​ 31, 2015 ​41,000 operating costs ​158,000 what is​ expert's operating​ income?

Answer 1

Net operating profit= 200,200

Step-by-step explanation:

Giving the following information:

Revenue ​$460,000

cost of goods manufactured ​97,800

beginning inventory of finished​ goods, January​ 1, 2015, ​45,000

ending inventory of finished​ goods, December​ 31, 2015, ​41,000

operating costs ​158,000

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 45000 + 97800 - 41000= $101,800

Now, we can structure the income statement:

Revenues= 460,000

COGS= 101,800

Gross profit= $358,200

Operating costs ​158,000

Net operating profit= 200,200