Classify the costs listed in Alternate problem A as either product costs or period costs.
Presley Manufacturing Company is a producer of music compact discs (CDs) and tapes. The following account balances are for the year ended 2009 December 31
|
Administrative expenses
|
$60,000
|
|
Depreciation expense - Manufacturing equipment
|
50,000
|
|
Direct labor
|
468,000
|
|
Manufacturing supplies expense
|
40,000
|
|
Indirect labor
|
36,000
|
|
Beginning inventories, 2009 January 1:
|
|
Direct materials
|
14,000
|
|
Work in process
|
20,000
|
|
Finished goods
|
128,000
|
|
Ending inventories, 2009 December 31
|
|
Direct materials
|
44,000
|
|
Work in process
|
56,000
|
|
Finished goods
|
92,000
|
|
Direct materials purchases
|
216,000
|
|
Rent expense - Factory
|
28,000
|
|
Sales
|
1,400,000
|
|
Selling expense
|
72,000
|
|
Other manufacturing overhead
|
126,000
|
a. Prepare a statement of cost of goods manufactured for Presley Manufacturing Company for 2009.
b. Prepare an income statement for the year ended 2009 December 31.