Slapshot Company makes ice hockey sticks and sold 16,000 sticks during the month of June at a total cost of $485,000. Each stick sold at a price of $90. Slapshot also incurred two types of selling costs: commissions equal to 15 percent of the sales price, and other selling expense of $200,000. Admini-strative expense totaled $115,000.
Required:
Prepare an income statement for Slapshot for the month of June.
Darshita Changed status to publish August 29, 2020
| Slapshot Company | ||
| Income Statement | ||
| For the Month of June | ||
| Sales revenue (16,000 × $90) | 1440000 | |
| Cost of goods sold | 485000 | |
| Gross margin | 955000 | |
| Less: | ||
| Selling expense: | 216000 | |
| Commissions (0.15 × $1,440,000) | 200000 | |
| Fixed selling expense | 115000 | |
| Administrative expense | 424000 | |
| Operatingincome | 416000 | |
Darshita Changed status to publish August 29, 2020
