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Class Test 1-Answer
Class Test 1-Answer
Outdoor Amenities
Income Statement
For the Year Ended December 31
Sales revenue $255,000
Cost of goods sold:
Wood $ 57,800
Stain 12,700
Labor costs 36,900
Indirect labor costs 21,300
Utility costs 11,200
Other manufacturing overhead 9,800
Less: Cost of goods sold 149,700
Gross profit 105,300
Less: Operating expenses
Salaries and wages $37,400
Rent and utilities 12,000
Marketing costs 17,300
Total operating expenses 66,700
Operating income $ 38,600
Note: For this exercise, the student is not required to prepare an income statement, but the income statement is presented
here to show the calculations for each item in the exercise requirements.