Calculation of Net Income

Classic Coolers manufactures portable coolers adorned with college logos. During the first quarter of the year, the compa
Direct materials used   $56,000
Direct labor   38,000
Factory rent   24,000
Factory equipment depreciation   10,000
Office equipment depreciation   1,400
Marketing expenses   5,500
Administrative expenses   12,000
The company had no beginning or ending work in process inventory and no beginning finished-goods inventory. Although
Required
Calculate Classic Coolers' net income for the first quarter.
arter of the year, the company had the following costs:
Income Statement
Sales $ 132,500
less: Cost of goods sold $ 84,800
Gross Margin $ 47,700
less: marketing expenses $ 5,500
16 less: administrative expenses $ 12,000
less: office equipment depreciation $ 1,400
d-goods inventory. Although 8,000 units were
Net Income $ 28,800

Beginning Finished Goods inventory $ -

add: Cost of goods manufactured $ 128,000
Cost of goods available for sale $ 128,000
less: Ending Finished Goods inventory $ 43,200
Cost of goods sold $ 84,800

Direct materials used $ 56,000

Direct labor $ 38,000
Factory rent $ 24,000
Factory equipment depreciation $ 10,000
Cost of goods manufactured $ 128,000
($ 128,000/8,000 units * 2,700 units)