Problem:
The Palin Company manufactures several products. The Palin Company has gathered the following information for the year ended December 31, 2010: Sales 110,000 Direct materials used 20,800 Indirect production costsNfixed 10,400 Indirect production costsNvariable 6,600 Direct laborNfixed 12,300 Direct laborNvariable 22,300 Selling expensesNfixed 33,040 Selling expensesNvariable 33,440 Finished goods inventory, January 1, 2010 12,000 Finished goods inventory, December 31, 2010 22,000 Work in process inventory, January 1, 2010 0 Work in process inventory, December 31, 2010 0
Requirements:
Question 1: Compute the Cost of Goods Manufactured for the year ended December 31, 2010.
Question 2: Compute the Cost of Goods Sold for the year ended December 31, 2010.
Question 3: Compute the Net Income(Loss) for the year ended December 31, 2010.
Note: Provide support for your rationale.