Problem - The following information is available for Yu Company for 2012:
Inventories January 1 December31
Materials $47,000 $58,500
Work in process 67,000 59,000
Finished Goods 70,000 62,000
Advertising Expense $42,500
Depreciation expense-office equipment 13,800
Depreciation expense-factory equipment 9,000
Direct labor 115,000
Heat, light, and power- factory 3,600
Indirect labor 14,400
Materials purchased 76,000
Office salaries expense 46,800
Property taxes-factory 2,500
Property taxes-headquaters building 8,400
Rent expense-factory 4,000
Sales 529,000
Sales salaries expense 82,500
Supplies-factory 3,000
Miscellaneous cost-factory 2,000
Instructions -
1. Prepare the 2012 statement of cost of goods manufactured.
2. Prepare the 2012 income statement.