The following data is available for the Duffy Manufacturing Company for the mont
ID: 2603759 • Letter: T
Question
The following data is available for the Duffy Manufacturing Company for the month of October 2014:
Cost of goods manufactured
$35614
Finished goods inventory, beginning
14951
Work in process, ending
14000
Finished goods inventory, ending
4001
Gross margin
37% of sales
Operating income
14683
What is Duffy’s operating expenses for the month of October 2014?
Cost of goods manufactured
$35614
Finished goods inventory, beginning
14951
Work in process, ending
14000
Finished goods inventory, ending
4001
Gross margin
37% of sales
Operating income
14683
Explanation / Answer
solution:-
opening wip = 49614
less: colsing wip=(14000)
cost of production=35614
add: opening stock of finished goods=14951
less: closing stock of finished goods=(4001)
cost of goods sold=46564
add: margin =(46564/63)*37=27347
sales=73911
gross profits: 27347
less: expense:=(12661)
operating income=14683
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