Thomson Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
Direct labor cost ...............................................$371,500
Purchases of direct materials ................................. 160,400
Freight-in on materials ....................................... 1,000
Factory supplies used ......................................... 37,800
Factory utilities ................................................ 46,000
Commissions paid ............................................. 80,000
Factory supervision and indirect labor ..................... 190,000
Advertising .................................................... 23,900
Material handling ............................................. 26,750
Work in process inventory, January 1 ...................... 201,000
Work in process inventory, December 31 .................. 98,000
Direct materials inventory, January 1 ...................... 47,000
Direct materials inventory, December 31 .................. 17,000
Finished goods inventory, January 1 ........................ 28,000
Finished goods inventory, December 31 ................... 45,200
Required:
1. Prepare a cost of goods manufactured statement.
2. Prepare a cost of goods sold statement.