Question

Using the information below, calculate net income for the period.

-Sales revenues for the period $1,304,000
-Operating expenses for the period $239,000
-Finished Goods Inventory, January 1 $36,000
-Finished Goods Inventory, December 31 $41,000
-Cost of goods manufactured for the period $540,000

A- $774,000.
B- $769,000.
C- $530,000.
D- $535,000.
E- $448,000.

Answer 1

Answer:

Net income for the period is C- $530,000.

Explanation:

Cost of goods sold is calculated by following formula:

Cost of goods sold = Finished Goods Inventory, January 1 + Cost of goods manufactured for the period - Finished Goods Inventory, December 31 = $36,000 + $540,000 - $41,000 = $535,000

Net income for the period = Sales revenues for the period - Cost of goods sold - Operating expenses for the period = $1,304,000 - $535,000 - $239,000 = $530,000