22 the 2007 income statement for sun ra company is shown below net sales 138 906 cos 4352270

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.

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