P2-16 - $310,000#2 Swift Company Income Statement For the...

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Megan Kave P2-16 #1 Swift Company Schedule of Cost of Goods Manufactured For the Month Ended August 31 Direct Materials: Raw Materials Inventory, August 1 $8,000 Add: Purchases of raw materials 165,000 Raw Materials Available for Use 173,000 Deduct: Raw Materials Inventory, August 31 13,000 Raw Materials used in production $160,000 Direct Labor 70,000 Manufacturing overhead 85,000 Total manufacturing cost 315,000 Add: Work in process inventory, August 1 16,000 331,000 Deduct: Work in process inventory, August 31 21,000 Cost of Goods manufactured
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Unformatted text preview: $310,000 #2 Swift Company Income Statement For the Month Ended August 31 Sales $450,000 Cost of Goods Sold: Finished goods inventory, August 1 $40,000 Add: Cost of goods manufactured 310,000 Goods available for sale 350,000 Deduct: Finished goods inventory, August 31 60,000 290,000 Gross Margin 160,000 Selling and Administrative Expenses 142,000 Net Operating Income $18,000 #3 I would recommend that they do not look for a buyer because the operating income is $18,000, not a loss of $12,000....
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