Comprehensive Problem - Batter Up manufactures competition softball bats using lightweight aluminum. It opened for business in late 2008. Based on the accounting records shown below as of December 31, 2009, prepare Batter Up's schedule of cost of goods manufactured and income statement.
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Work in process inventory, December 31, 2009
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$ 15,000.00
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Finished goods inventory, December 31, 2008
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-
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Finished goods inventory, December 31, 2009
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20,000.00
|
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Sales revenue
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130,000.00
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Delivery expense
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4,800.00
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Sales salary expense
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15,000.00
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Direct labor
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28,000.00
|
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Direct material purchases
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40,000.00
|
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Depreciation on plant and equipment
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6,500.00
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Janitorial supplies
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4,000.00
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Plant janitorial services
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5,500.00
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Rent on manufacturing plant
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12,000.00
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Utilities for manufacturing plant
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7,500.00
|
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Raw materials inventory, December 31, 2008
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32,000.00
|
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Raw materials inventory, December 31, 2009
|
26,000.00
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Work in process inventory, December 31, 2008
|
-
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Prepare an income statement for year ended December 31, 2009.