Calculation of Net Income
Classic Coolers manufactures portable coolers adorned with college logos. During the first quarter of the year, the company had the following costs:
Direct materials used $56,000
Direct labor 38,000
Factory rent 24,000
Factory equipment depreciation 10,000
Office equipment depreciation 1,400
Marketing expenses 5,500
Administrative expenses 12,000
The company had no beginning or ending work in process inventory and no beginning finished-goods inventory. Although 8,000 units were started and finished during the quarter, just 5,300 were sold, for an average price of $25 each.
Required
Calculate Classic Coolers' net income for the first quarter.