Revenue $ 460 comma 000 Beginning inventory of direct materials, January 1, 2015 23 comma 000 Purchases of direct materials 15 comma 200 Ending inventory of direct materials, December 31, 2015 14 comma 000 Direct manufacturing labor 27 comma 000 Indirect manufacturing costs 43 comma 000 Beginning inventory of finished goods, January 1, 2015 49 comma 000 Cost of goods manufactured 94 comma 200 Ending inventory of finished goods, December 31, 2015 41 comma 000 Operating costs 153 comma 000 What is Expert's operating income?

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anthonynguyen3006 anthonynguyen3006 · Answer 1 · 2020-03-29T05:32:35+02:00

Answer:

$204,800

Explanation:

First, we need to calculate Cost of Good sold

Cost of good sold (COGS) = (Beginning inventory of finished good + Cost of goods manufactured - Ending inventory of finished good)

= 49000 + 94200 - 41000 = 102,200

--> Gross profit = Revenue - COGS = 460,000 - 102,200 = 357,800

Operating income = Gross profit - Operating costs = 357,800 - 153,000 = 204,800

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