oot Brush Company sells standard hair brushes. The following information summari

Question

oot Brush Company sells standard hair brushes. The following information summarizes Root's operating activities for 2018 EEB (Click the icon to view the information.) Requirements 1. Calculate the operating income for 2018 2. Root sold 5,400 brushes in 2018. Compute the unit cost for one brush. Requirement 1. Calculate the operating income for 2018 Root Brush Company Income Statement Year Ended December 31, 2018 i Data Table Revenue: 108,000 Selling and Administrative Expenses Purchases Net Sales Revenue Merchandise Inventory, January 1, 2018 Merchandise Inventory, December 31, 2018 $ 38,880 67,500 108,000 9,450 18,630 Cost of Goods Sold Purchases 67,500 9450) 18360 Beginning Merchandise Inventory Ending Merchandise Inventory Cost of Goods Available for Sale Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income PrintDone

Explanation / Answer

Answer =1) ROOT BRUSH COMPANY CALCULATION OF THE OPERATING INCOME FOR 2018 FOR THE YEAR ENDED DECEMBER 31, 2018 PARTICULARS AMOUNT AMOUNT Net Sales Revenue $              1,08,000 Cost of Goods Sold Purchases $                  67,500 Add: Beginning Merchandise inventory, January 01 2018 $                    9,450 Cost of Goods Available for Sold $                  76,950 Less: Merchandise inventory , December 31, 2018 $                  18,630 Cost of Goods Sold $                  58,320 Gross Profit $                  49,680 Less: Selling and Administrative Expenses $                  38,880 Operating Income $                  10,800 Answer =2) CALCULATION OF UNIT COST Cost of Goods Sold = $                  58,320 Divide By "/"By No. of Unit Sold = $                    5,400 Unit Cost Per Unit = $                    10.80

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