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Accounting and Income Statements

1. Given for Flexible Products, Inc.:
The following "T" A/C's show December 31, 2001 ending balances:

Work-in-process $41,000 Finishedproduct $ 148,000
January 31, 2002 balances are:
Work-in-Process (WIP) $ 47,000 (dr.)
Finished Goods (F/G) 152,000 (dr.)

The Income Statement showed Sales of 309,000 and Gross Margin of 205,000.

A. Based on the above information, what was the Cost Of Goods Manufactured? $ _________

B. Cost of Goods Available for Sale was $225,000 and Beginning Finished Gds Inventory was $25,000.
If 40,000 units were produced, what was the unit cost of production ? (independent from A. above) $ _________

Solution Summary

This solution provides calculations with involving income statements.