Task:
Preparation of a schedule of costo goods Manufactured and cost goods sold.
The following cost and inventory data for the just completed year are taken from the accounting records of eccfles company:
Cost incurred:
Advertising Expense:..............................$100,000
Direct labor cost.....................................$90,000
Puchases of raw materials.......................$132,000
Rent, factory building..............................$80,000
Indirect labor.........................................$56,300
Sales commissions.................................$35,000
Utilities, factory......................................$9,000
Maintenance, Factory equipment..............$24,000
Supplies, Factory...................................$700
Depreciation, office equipment ...............$8,000
Depreciation, factory equipment..............$40,000
beginning end of year year
Inventories:
Raw materials $8,000 $10,000
Work in Process $5,000 $20,000
finished good $70,000 $25,000
1. Prepare a schedule of cost of goods manufactured
2. Prepare the cost of goods sold section of eccles company's income statement for the year.