Problem - Prepare Statements for a Manufacturing Company
The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year:
| Administrative costs |
$1,646 |
| Building and machine depreciation (75% of this amount is for factory) |
900 |
| Building utilities (90% of this amount is for factory) |
1,290 |
| Direct labor |
845 |
| Direct materials inventory, December 31 |
13 |
| Direct materials inventory, January 1 |
13 |
| Direct materials purchases |
3,700 |
| Factory supervision |
494 |
| Finished goods inventory, December 31 |
70 |
| Finished goods inventory, January 1 |
51 |
| Indirect factory labor |
911 |
| Indirect materials and supplies |
675 |
| Marketing costs |
865 |
| Property taxes on building (85% of this amount is for factory) |
900 |
| Sales revenue |
13,004 |
| Work-in-process inventory, December 31 |
27 |
| Work-in-process inventory, January 1 |
29 |
Required:
Prepare an income statement with a supporting cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)