Question - Stable Company manufacture rocking chairs. They began the current year with no inventory. During the year, they incurred the following costs:
$198,000 manufacturing costs
$40,000 selling and administrative costs
They produced 2,000 chairs. They sold 1,200 of the chairs for $400 each.
After typing all 5 of your answers, please show and label all of your work below answer #5. (All of the work comes after you list all of the answers so that I can clearly see your final answers at the top.)
1. What is the average cost of one rocking chair during the current year?
2. What will Stable report as cost of goods sold on the income statement?
3. What will Stable report as gross margin on the income statement?
4. What will Stable report as net income on the income statement?
5. What will Stable report as inventory on the balance sheet as of the end of the current year?