DrumBeats of Scottsdale manufacture drum sets. The following information is available for December 31st, 20x5.
Advertising Expense $ 19,125
Depreciation Expense, Office Equipment 8,750
Depreciation Expense, Selling Equipment 10,000
Depreciation Expense, Factory Equipment 32,500
Factory Supervision 122,500
Factory Supplies Used 15,750
Factory Utilities 36,250
Raw Materials Inventory, Dec 31, 20x4 177,500
Raw Materials Inventory, Dec 31, 20x5 168,125
Goods in Process, Dec 31, 20x4 15,875
Goods in Process, Dec 31, 20x5 14,000
Finished Goods, Dec 31, 20x4 164,375
Finished Goods, Dec 31, 20x5 129,000
Direct Labor 650,750
Income Tax Expense 277,425
Indirect Labor 60,000
Miscellaneous Production Costs 8,500
Office Salaries Expense 100,875
Raw Materials Purchases 872,500
Rent Expense, Office Space 21,125
Rent Expense, Selling Space 25,750
Rent Expense, Factory Building 79,750
Maintenance Expense, Factory Equipment 27,875
Sales 3,275,000
Sales Discounts 57,500
Sales Salaries Expense 268,250
1. Prepare DrumBeats 20x5 Manufacturing Statement.
2. Prepare DrumBeats 20x5 Common-Sized Income Statement that reports separate categories for Selling Expenses and General & Administrative Expenses.