Chekwa is a manufacturing company. The $66,000 was paid to purchase the following items:
Paid $4,400 cash to purchase materials that were used to make products during the year.
Paid $26,000 cash for wages of factory workers who made products during the year.
Paid $2,600 cash for salaries of sales and administrative employees.
Paid $33,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a 3-year life and a $7,500 salvage value. The company uses straight-line depreciation.
During 2007, Chekwa started and completed 2,500 units of product. The revenue was earned when Chekwa sold 2,000 units of product to its customers.
Sales Revenue $60,000
Cost of Goods Sold = ?
Gross Margin = ?
Administrative Expense = ?
Net Income = ?
2007-09-15
16:25:22
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2 answers
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Other - Business & Finance