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Unformatted text preview: a. SALSA INC. Income Statement For the Month Ended May 31, 2010 Revenues $870,000 Cost of goods sold 485,000 Gross profit $385,000 Sel ing expenses $210,000 Administrative expenses 75,400 285,400 Income from operations $99,600 b. Materials inventory: Purchased materials $244,000 Materials used in production 210,000 Materials inventory, May 31 $34,000 Work in process inventory: Materials used in production $210,000 Direct labor 180,000 Factory overhead 135,000 Additions to work in process $525,000 Transferred to finished goods 510,000 Work in process inventory, May 31 $15,000 Finished goods inventory: Transferred to finished goods $510,000 Cost of goods sold 485,000 Finished goods inventory, May 31 $25,000 Instructions...
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- Winter '08