1. How is the income statement of a service company different from the income statement of a merchandising company?
2. Comstock Company purchased 1,000 units of its product for $6 per unit. Comstock sold 800 units for $10 per unit.
a. What is Comstock's sales revenue?
Sales revenue based on sales price of inventory sold =$6 per unit
b. What is Comstock's cost of goods sold?
Cost of goods sold based on cost of inventory sold = $10 per unit
c. What is Comstock's inventory?
Inventory based on cost of inventory on hand= $10 per unit
d. What is the difference between inventory and cost of goods sold? Cost of goods sold and sales revenue?
e. What is Comstock's gross profit? Is gross profit an account?
Gross profit, also called gross margin, is the excess of Sales revenue minus cost of goods sold. It is called gross profit because operating expenses have not yet been subtracted.
6000 - 8000 = - 2000