Onyx Corporation Has Provided the Following Information About Its Operating

question 10

Essay

Onyx Corporation has provided the following information about its operating activities for the year:
$$\begin{array} { | l | r | } \hline \text { Merchandise Inventory, January 1 } & \$ 150,000 \\\hline \text { Merchandise Inventory, December 31 } & 75,000 \\\hline \text { Purchases } & 854,000 \\\hline \text { Selling and Administrative Expenses } & 65,000 \\\hline \text { Sales Revenue } & 1,000,000 \\\hline\end{array}$$ Required: Prepare Onyx's income statement for the year ended December 31, including the heading. Use the format provided below:
$$\begin{array} { | l | l | l | } \hline \text { Sales Revenue } &\quad\quad\quad &\quad \quad \quad \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Beginning Inventory } & & \\\hline \text { Cost of Goods Available for Sale } & & \\\hline \text { Ending Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Gross Profit } & & \\\hline \text { Selling and Administrative Expenses } & & \\\hline \text { Operating Income } & & \\\hline\end{array}$$

---

Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, indicative of the cost per unit of output.

Total Cost

The combined total of all costs associated with generating goods or services, covering both fixed and variable expenses.

Price of Labor

The wage rate paid to employees, essentially the cost of labor to employers.

AVC Curve

A graph that shows the average variable costs of production at different levels of output.