Prepare the income statement for West Nautical Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold 34,000 units of its product at a price of $12 each during the year.

Explanation:

West Nautical Company

Income  

Statement

For Current Year

Sales revenues    $416,000

Less:Cost of goods sold  220,200

Gross profit             195,800

Less:Operating expenses

Marketing expenses        $78,000

General and administrative expenses28,500106,500

Operating income              $89,300

Beginning    End of YearEnd of Year  

of Year

Raw materials inventory  $ 21,000      $ 25,000Insurance on plant. ..7,000

Work in process inventory  37,000$ 27,000Depreciation-plant building and equipment     12,900

Finished goods inventory   15,000$ 23,000Repairs and maintenance-plant. . . . . . . .4,300

Purchases of direct materials  $ 70,000        Marketing expenses. . . . . . . . 78,000

Direct labor. . . . . . . . . . . .  $ 86,000      General and administrative expenses. . .28,500

Indirect labor. . . . . . . . . . .  $ 42,000

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