Question

The following data were taken from the records of Blue Company for the fiscal year ended June 30, 2017.

Raw Material Inventory 7/1/16 $49,900
Factory Insurance $4,800
Raw Material Inventory 6/30/17 45,000
Factory Machinery Depreciation 17,100
Finished Goods Inventory 7/1/16 96,100
Factory Utilities 30,500
Finished Goods Inventory 6/30/17 28,500
Office Utilities Expense 9,550
Work in Process Inventory 7/1/16 22,700
Sales Revenue 556,800
Work in Process Inventory 6/30/17 29,200
Sales Discounts 4,500

Prepare Income statement through gross profit.

Answer 1

Step-by-step explanation:

Base on the scenario been described in the question, we are can use the following.

Sales Revenue 556,800

Less Cost of Sales

Opening Stock of Finished Goods 96,100

Add Cost of Goods Manufactured :

Raw Materials($49,900-45,000) 4,900

Factory Insurance 4,800

Factory Machinery Depreciation 17,100

Factory Utilities 30,500

Add Opening Work in Process Inventory 22,700

Less Closing Work in Process Inventory (29,200)

Less Closing Stock Finished Goods Inventory (28,500) ( 118,400)

Gross Profit 438,400

Office Utilities Expense (9,550)

Discounts sales (4,500)

Net Income 424,350

Answer 2

Sales Revenue 556,800

Less Cost of Sales

Opening Stock of Finished Goods 96,100

Add Cost of Goods Manufactured :

Raw Materials($49,900-45,000) 4,900

Factory Insurance 4,800

Factory Machinery Depreciation 17,100

Factory Utilities 30,500

Add Opening Work in Process Inventory 22,700

Less Closing Work in Process Inventory (29,200)

Less Closing Stock Finished Goods Inventory (28,500) ( 118,400)

Gross Profit 438,400

Less Expenses :

Office Utilities Expense (9,550)

Sales Discounts (4,500)

Net Income / (loss) 424,350

Step-by-step explanation:

Note that Cost Of Goods sold Consist of Accumulation of Manufacturing Costs.