Problem
Consider the following information for Fair Wind Yachts Incorporated, a manufacturer of sailboat rigging, blocks, and cordage.
|
Advertising expenses
|
$ 150,000
|
|
Depreciation expense-administrative office
|
75,000
|
|
Depreciation expense-plant and equipment
|
320,000
|
|
Depreciation expense-delivery trucks
|
45,000
|
|
Materials inventory, beginning
|
16,000
|
|
Materials inventory, ending
|
18,000
|
|
Direct materials purchases
|
410,000
|
|
Direct labor
|
512,000
|
|
Indirect labor
|
269,000
|
|
Finished goods inventory, beginning
|
55,000
|
|
Finished goods inventory, ending
|
43,000
|
|
Insurance on plant
|
32,000
|
|
Heat and light for plant
|
22,000
|
|
Repairs on plant building
|
36,000
|
|
Supervisor's salary-plant
|
98,000
|
|
Supplies-plant
|
132,000
|
|
Supplies-administrative office
|
78,000
|
|
Work-in-process inventory, beginning
|
31,000
|
|
Work-in-process inventory, ending
|
39,000
|
|
Sales representatives' salaries
|
325,000
|
|
Sales revenue
|
2,885,000
|
Task
Make a statement of cost of goods manufactured and an income statement for Fair Wind Yachts for the year ended December 31.