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


General and administrative expenses36,804


Interest expense204


Income tax expense5,728


Discontinued operations612

$  1,980


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.


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


End of month (WIP-eom)31,000


Beginning of month (WIP-bom)40,000


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.

Posted in Uncategorized