Part A:
In December, Vollick Corporation had sales of $245,000, selling expenses of $23,000, and administrative expenses of $26,000. The cost of goods manufactured was $190,000. The beginning balance in the finished goods inventory account was $59,000 and the ending balance was $56,000.
Required: Prepare an Income Statement in good form for December. Be sure to use a proper heading.
Part B: The following data were taken from the cost records of Morrey Company for last year:
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Depreciation, factory.....................
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$60,000
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Indirect labor.................................
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$100,000
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Utilities, factory............................
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$40,000
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Insurance, factory..........................
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$10,000
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Lubricants for machines................
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$15,000
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Direct labor....................................
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$200,000
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Purchases of raw materials............
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$150,000
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Inventories at the beginning and at the end of the year were as follows:
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Beginning
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Ending
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Raw materials....................
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$10,000
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$20,000
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Work in process.................
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$25,000
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$5,000
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Finished goods..................
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$30,000
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$50,000
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Required: Prepare a schedule of cost of goods manufactured in good form. Be sure to use a proper heading.