Accounting – 5.4 Clubs and societies | e-Consult
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Bespoke Scarves Income Statement
For the year ended 31 December 2022
| Item | Amount (£) |
| Sales Revenue | 18,000 |
| Direct Materials | 4,000 |
| Direct Labour | 6,000 |
| Factory Overheads | 3,000 |
| Sales Commission | 1,000 |
| Cost of Goods Sold | 14,000 |
| Gross Profit | 4,000 |
| Net Profit | 4,000 |
Note: This income statement shows the profitability of the bespoke scarf business. It starts with sales revenue, deducts the cost of goods sold (which includes direct materials, direct labour, and factory overheads), and then subtracts sales commission to arrive at net profit.