Problem:
The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year.
Sales......................................................................................... $870
Purchases of raw materials............................................................ $190
Direct labor................................................................................. $200
Manufacturing overhead................................................................ $230
Administrative expenses................................................................ $150
Selling expenses.......................................................................... $140
Raw materials inventory, beginning................................................. $10
Raw materials inventory, ending...................................................... $40
Work in process inventory, beginning............................................... $20
Work in process inventory, ending.................................................... $50
Finished goods inventory, beginning................................................ $90
Finished goods inventory, ending..................................................... $130
Required:
Q1. Prepare a Schedule of Cost of Goods Manufactured in good form.
Q2. Compute the Cost of Goods Sold.
Q3. Using data from your answers above as needed, prepare an Income Statement in good form.