22.The 2007 income statement for Sun-Ra Company is shown below:
Net sales$138,906
Cost of goods sold93,578
45,328
General and administrative expenses36,804
8,524
Interest expense204
8,320
Income tax expense5,728
2,592
Discontinued operations612
$ 1,980
Required:
a. What was Sun-Ra's gross profit?
b. What was Sun-Ra's income from operations?
c. What was Sun-Ra's income before income tax?
d. What was Sun-Ra's income from continuing operations?
e. What was Sun-Ra's net income?
23.G. W. Clinton manufactures golf equipment. Listed below are selected accounts that relate to the previous month of operation.
Sales$310,000
Bad debts expense4,300
Raw materials inventory
Beginning of month (RMI-bom)30,000
Raw materials inventory
End of month (RMI-eom)12,400
Allowance for uncollectible accounts1,470
Overhead costs8,700
Labor costs13,000
Accounts receivable17,855
Finished goods inventory
Beginning of month (FGI-bom)104,000
Materials purchased during month17,000
Cost of goods sold (COGS)124,400
Work-in-process
End of month (WIP-eom)31,000
Work-in-process
Beginning of month (WIP-bom)40,000
Required:
a. Calculate the cost of materials used in production.
b. Calculate the cost of goods completed.
c. Calculate finished goods inventory at the end of the month.