1. Introduction to Managerial Accounting

John’s Jams 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 John’s Jams?

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?

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?

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?