Gravois, Inc., incurred the following costs during June: During the month, 19,50
ID: 2348695 • Letter: G
Question
Gravois, Inc., incurred the following costs during June:
During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process.
Prepare a traditional (absorption) income statement for Gravois, Inc., for the month of June. Assume that sales for the month were $1,035,000 and the company's effective income tax rate was 35%. (Amounts to be deducted should be indicated with minus sign. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
Gravois, Inc., incurred the following costs during June:
Selling expenses $ 158,375
Direct labor
283,140
Interest expense
41,065
Manufacturing overhead, actual
204,750
Raw materials used
460,980
Administrative expenses
123,000
During the month, 19,500 units of product were manufactured and 11,000 units of product were sold. On June 1, Gravois, Inc., carried no inventories. On June 30, there were no inventories for raw materials or work in process.
Requirement 4:
Prepare a traditional (absorption) income statement for Gravois, Inc., for the month of June. Assume that sales for the month were $1,035,000 and the company's effective income tax rate was 35%. (Amounts to be deducted should be indicated with minus sign. Round your intermediate calculations to 2 decimal places. Omit the "$" sign in your response.)
Explanation / Answer
COGS = 535260 G.Profit = 499740 Selling & Adm. Expenses = 281375 Operating Income = 218365 Interest Expense = 41065 Income before tax = 177300 Tax Expense = 62055 Net Income = 115245
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