Ch. 1 Introduction to Managerial Accounting
Income Statement Preparation
Ch. 1 Introduction to Managerial Accounting
Income Statement Preparation: Videos & Practice Problems
0
Concept
Inventories and Cost of Goods Sold
Video duration:
4m0
Example
Inventories and Cost of Goods Sold
Video duration:
2m0
Example
Inventories and Cost of Goods Sold
Video duration:
1m0
Problem
Jimothy’s Preserves began the year with \$5,000 of finished jam in inventory. During the year they produced \$20,000 of jam and ended the year with \$8,000 in Finished Goods Inventory. What is the Cost of Goods Sold for Jimothy’s Preserves?
A
\$33,000
B
\$23,000
C
\$17,000
D
\$25,000
0
Problem
Above Average Purchase is an electronics merchandising store. During August they acquire products worth \$50,000. If they started the year with \$10,000 of electronics in inventory, and finished the period with \$30,000 worth of inventory on shelves, what was their Cost of Goods Sold?
A
\$25,000
B
\$15,000
C
\$20,000
D
\$30,000
0
Concept
Creating an Income Statement
Video duration:
4m0
Example
Creating an Income Statement
Video duration:
3m0
Problem
Jamison’s Jerseys produces replica sports memorabilia. Their cost and sales data are recorded below. What was Jamison’s Jerseys’ Gross Profit for the year?
A
\$12,000
B
\$6,000
C
\$8,000
D
\$10,000
0
Problem
Bill’s Bobbleheads are preparing their income statement for the year. In the past year Bill’s has sold \$20,000 worth of bobbleheads. They finished the year with \$3,000 in inventory, manufactured \$10,000 of products, and began the year with \$8,000 in Finished Goods Inventory. If Bill’s Bobbleheads spent \$1,500 on Operating Expenses during the year, what is their Net Operating Income?
A
\$3,500
B
\$5,000
C
\$6,500
D
\$10,000
