Problem:
The Following information is available for Rosetta Company for 2010:
Inventories January 1 December 31
Materials $59,500 $73,500
Work in process 84,000 73,500
Finished goods 87,500 77,000
Advertising expense $52,500
Depreciation expense -office equipment 17,500
Depreciation expense -factory equipment 11,200
Direct labor 143,500
Heat, light, and power -factory 4,500
Indirect labor 18,200
Materials purchased 95,000
Office salaries expense 59,500
Property taxes - factory 3,150
Property taxes - headquarters building 10,500
Rent expense - factory 5,250
Sales 665,000
Sales salaries expense 105,000
Supplies - factory 2,500
Miscellaneous cost - factory 3,400
Instructions:
1. Prepare the 2010 statement of cost of goods manufactured.
2. Prepare the 2010 income statement.