The cost accountant for Angie’s Apparel has compiled the following information f

Question

The cost accountant for Angie’s Apparel has compiled the following information for last month's operations:

Required:

Prepare an income statement with a supporting cost of goods sold statement

The cost accountant for Angie’s Apparel has compiled the following information for last month's operations:

Required:

Prepare an income statement with a supporting cost of goods sold statement

Administrative costs $ 42,000 Merchandise inventory, July 1 9,000 Merchandise inventory, July 31 7,500 Merchandise purchases 360,000 Sales commissions 27,000 Sales revenue 570,000 Store rent 9,000 Store utilities 16,500 Transportation-in costs 27,000

Explanation / Answer

ANGIE'S APPAREL Income Statement For the Month Ended July 31 Sales revenue 570000 Cost of goods sold 3,88,500 Gross margin 1,81,500 Marketing and administrative costs 52500 =27000+9000+16500 Operating income 1,29,000 ANGIE'S APPAREL Cost of Goods Sold Statement For the Month Ended July 31 Merchandise inventory, July 1 9000 Merchandise purchases 360000 Transportation-in 27,000 Total cost of goods purchased 3,87,000 Cost of goods available for sale 3,96,000 Merchandise inventory, July 31 7,500 Cost of goods sold 3,88,500

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