Exe r cE ixer s ec ise 2.12 2.12 1. Uni ts e ndi ng fi ni s he d goods = 3, 400 + 3 0, 000 – 31 , 000 = 2, 400 Fi ni s he d goods e ndi ng i nve ntor y = 2, 400 × $ 39 * = $ 93, 600 * S i nc e the uni t c os t of be gi nni ng fi ni s he d goodsandtheunitcostofcurrent producti on both e qua l $ 39 , the uni t c os t of e ndi ng fi ni s he d goods m us t a l s o e qua l $ 39 . 2. Kilde e r Com pa ny S ta te m e nt of Cos t of G oods S ol d For the Year E nded Decem ber 31 Cos t of goods m a nufa c tur e d ($ 39 × 3 0 , 000) ................................ $ 1, 170, 000 ...... Be gi nni ng fi ni s he d goods i nve ntor y................................ Add: 132, 600 .......... Cos t of goods avai l abl e for sal e ................................ $ 1, 302, 600 .......................... Le s s : E ndi ng fi ni s he d goods i nve ntor y................................ 93, 600 .............. Cos t of goods s ol d ................................ ................................ ............... $ 1, 209, 000 3. Kilde e r Com pa ny I nc om e S ta te m e nt: Abs or pti on Cos ti ng For the Year E nded Decem ber 31
P er cent
S al es (31 , 000 × $ 5 2 ) ................................ .................. $ 1, 612 ,0 0 0 100. 00 Cos t of goods s ol d ................................ ................... 1, 209, 000 75. 00 G ros s ma rgi n ................................ ............................ $ 403, 000 25. 00 Less oper ati ng expenses: Com m i s s i ons (31 , 000 × $ 1. 30 ) ........................... $ 40, 300 Adver ti si ng co-pa ys ................................ ............ 95, 000 Adm i ni str ati ve expenses ................................ .... 183 , 000 3 18, 300 19, 75 O pe r a ti ng i nc om e ................................ ..................... $ 84, 700 5. 25