Problem:
The following data were taken from the records of Cruz Manufacturing Company for the year ended December 31, 2005.
Raw Materials Inventory 1/1/05 $ 47,000
Factory Machinery Depreciation 7,700
Factory Insurance $ 7,400
Raw Materials Inventory 12/31/05 44,200
Factory Utilities 12,900
Finished Goods Inventory 1/1/05 85,000
Office Utilities Expense 8,600
Sales 475,000
Finished Goods Inventory 12/31/05 77,800
Work in Process Inventory 1/1/05 9,500
Sales Discounts 2,500
Plant Manager's Salary 30,000
Work in Process Inventory 12/31/05 8,000
Factory Property Taxes 6,100
Factory Repairs 800
Direct Labor 145,100
Raw Materials Purchases 67,500
Indirect Labor 18,100
Cash 28,000
Accounts Receivable 27,000
Instructions:
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)
(b) Prepare an income statement through gross profit.
(c) Prepare the current assets section of the balance sheet at December 31.