The following data is available for the Duffy Manufacturing

The following data is available for the Duffy Manufacturing Company for the month of October 2014:

Cost of goods manufactured

$35614

Finished goods inventory, beginning

14951

Work in process, ending

14000

Finished goods inventory, ending

4001

Gross margin

37% of sales

Operating income

14683

What is Duffy’s operating expenses for the month of October 2014?

Solution

solution:-

opening wip = 49614

less: colsing wip=(14000)

cost of production=35614

add: opening stock of finished goods=14951

less: closing stock of finished goods=(4001)

cost of goods sold=46564

add: margin =(46564/63)*37=27347

sales=73911

gross profits: 27347

less: expense:=(12661)

operating income=14683