Task: Cost of Goods and Income Statement: Household Furnishings, Inc. Exercise
Consider the following information for Household Furnishing, Inc. for the year ended December 31, 2013:
| Depreciation expense-administrative office |
$33,000 |
| Depreciation expense-plant and equipment |
88,000 |
| Direct labor-wages |
487,000 |
| Direct material inventory, Dec. 31, 2013 |
25,000 |
| Direct material inventory, Jan. 01, 2013 |
18,000 |
| Direct materials purchases |
155,000 |
| Finished goods inventory Dec. 31, 2013 |
38,000 |
| Finished goods inventory Jan. 01, 2013 |
15,000 |
| Heat, light, and power plant |
44,000 |
| Indirect Labor |
25,000 |
| Property taxes-plant |
34,000 |
| Sales representative salaries |
145,000 |
| Sales revenue |
1,500,000 |
| Factory supervisors salary |
66,000 |
| Supplies-administrative office |
16,000 |
| Supplies-plant |
29,000 |
| Work-in-process inventory, Dec. 31, 2013 |
9,000 |
| Work-in-process inventory, Jan. 01 2013 |
23,000 |
Required:
Prepare a schedule of cost of goods manufactured and an income statement for Household Furnishings for the for the year ended December 31, 2013.