Manufacturing Firm Income Statement

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.

1. Prepare an income statement for Slapshot for the month of June

Sales revenue:

Cost of goods sold:

Gross margin:

Sellong expense:

Commisions:

Fixed selling expense:

Administrative expense:

Operating income:

Operating income = $125,000        

Explanation:

                           Income statement                              

Particular                                                     Amount      

Sales revenue(1,880 x $400)                    $752,000

LESS: Cost of goods sold                          $433,000

Gross margin                                               $319,000

LESS: Selling expense                                $65,000

          Commissions($752,000 x 10%)       $75,200

           Administrative expense                  $53,800

Operating income                             $125,000        

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