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Particulars Value Total Amount



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Final Exam Accounting

Particulars Value Total Amount
Sales 20,000 units @ $30 = $600,000
Less: Manufacturing Expenses
Cost of goods sold $24,000 + $180,000 - $44,000 $160,000

Gross Margin $440,000
Less: Operating Expenses
Administrative Expense $70,000
Selling expense $120,000 $190,000
Operating Income $250,000
Note: In traditional statement fixed and variable are not segregated and only direct cost associated is subtracted to calculate cost of goods sold, then gross margin is calculated. After that selling and administration expenses are deducted to calculate net operating income.
B)Contribution format income Statement

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