### Table B: Bookkeeping for DrinkCo | Description | Amount | |--------------------------------------|------------| | **Total Revenues** | $300,000 | | **Salaries Paid to Workers** | $95,000 | | **Input Costs for Food Ingredients** | $23,616 | | **Utilities Bill** | $17,868 | | **Opportunity Cost of Owner's Time** | $71,271 | **Question:** See the above table. What is the economic profit earned by DrinkCo? --- To calculate the economic profit, subtract all costs (including opportunity costs) from the total revenues. The traditional costs included here are salaries, input costs, and utilities, while the opportunity cost refers to the potential earnings the owner foregoes by investing time in DrinkCo rather than elsewhere. --- **Table A: Bookkeeping for FoodCo** | Description | Amount | |---------------------------------------|------------| | **Total Revenues** | $200,000 | | **Salaries Paid to Workers** | $46,000 | | **Input Costs for Food Ingredients** | $22,826 | | **Utilities Bill** | $6,076 | | **Opportunity Cost of Owner's Time** | $48,215 | **Question:** See the above table. What is the **accounting profit** earned by FoodCo? --- To calculate the accounting profit, subtract the explicit costs (Salaries, Input Costs, Utilities) from the Total Revenues. The opportunity cost of the owner's time is not included in accounting profit calculations.

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Question 6 Kennish Company sold 5840 units for $46 each. Variable costs were $27 per unit and total fixed expenses were $23860. What is Kennish's net income?

Question 3 Ashale Botwe Ltd has the following cost and expense data for the year ending December 31, 2022. Direct materials (GHC) Work in process (GH¢) Finished goods (GH¢) Insurance factory Property taxes on factory building Materials purchases Sales Indirect materials Delivery expenses Sales commissions Indirect labour 1/1/22 Factory machinery rent Factory utilities Direct labour 30,000 80,000 110,000 Other items of revenue and cost during the year are as follows: (GHC) 31/12/22 20,000 50,000 120,000 Direct materials used b) Total manufacturing cost c) Statement of cost of goods manufactured d) Prime cost e) Conversion cost f) Cost of goods available for sale g) Cost of goods sold h) Gross profit i) Period cost j) Net income 14,000 6,000 205,000 1,500,000 15,000 100,000 150,000 90,000 40,000 ARI 65,000 350,000 24,000 35,000 300,000 Depreciation, factory building Factory manager's salary Administrative expenses For the year 2022, you are required to compute the following:

Cost of Goods Sold, Profit Margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured Selling expenses Administrative expenses Sales Finished goods inventory, January 1 Finished goods inventory, January 31 $4,490,000 530,000 340,000 6,600,000 880,000 775,000 (a) For the month ended January 31, determine Bandera's cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 Finished goods inventory, January 1 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, January 31 Cost of goods sold

Sales 218,000                                               Gain on sale of equipment $ 6,290           epreciation expense—Office copier $ 530  Office supplies expense 620  Sales discounts 16,700 Insurance expense 1,380 Sales returns and allowances 3,900  TV advertising expense 3,800 Office salaries expense 31,100 Interest revenue 650  Rent expense—Selling space 11,600 Cost of goods sold 91,000   Sales staff wages 23,700 Sales commission expense 13,100 whats the total income profited