The following information is available for Vega Manufacturing Company for the monthe ending July 31, 2012:
Cost of goods manufactured ..........$270,000
Selling expenses ................ 58,000
Administrative expenses ............ 46,000
Sales ................... 515,000
Finished goods inventory, July 1 ........ 66,000
Finished goods inventory, July 31 ........ 62,000
For the month ended July 31, 2012, determine Vega’s
(a) Cost of goods sold,
(b) Gross profit, and
(c) Net income.

a. Finished goods inventory, July 1, 2012...................................................... $ 66,000

Cost of goods manufactured...................................................................... 270,000

Cost of finished goods available for sale.................................................... $336,000

Less finished goods inventory, July 31, 2012............................................ 62,000

Cost of goods sold...................................................................................... $274,000

b. Sales ............................................................................................ $515,000

Cost of goods sold...................................................................................... 274,000

Gross profit................................................................................................. $241,000

c. Gross profit............................................................................. $241,000

Operating expenses:

Selling expenses.................................................................. $58,000

Administrative expenses..................................................... 46,000

Total operating expenses................................................ 104,000

Net income.............................................................................. $137,000