Question

Slapshot Company makes ice hockey sticks and sold 1,880 sticks during the month of June at a total cost of $433,000. Each stick sold at a price of $400. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price, and other selling expense of $65,000. Administrative expense totaled $53,800.
Prepare an income statement for Slapshot for the month of June

Answer 1

Answer:

$125,000

Explanation:

Preparation of an income statement for Slapshot for the month of June

Sales revenue $752,000

(1,880 x $400)

Less Cost of goods sold ( $433,000)

Gross margin $319,000

($752,000-$433,000)

Less Selling expense ($65,000)

Less Commissions ($75,200)

($752,000 x 10%)

Less Administrative expense ($53,800)

Operating income $125,000

Therefore income statement for Slapshot for the month of June will be $125,000