Problem - The following information is taken from December 31, 2015, adjusted Trial Balance and other records fof PAPO'S Company before the calender year-end closing entries are record:
Direct Labor ........................................................................$803,250
Income taxes expenses ...................................................222,000
Indirect labor .....................................................................65,070
Depreciation expense - Factory equipment ................42,420
Miscellaneous Factory Overhead ................................6,125
Office salaries expenses ...................................................53,000
Raw material purchases ...................................................875,000
Rent expense - office space ............................................18,000
Rent expense - Selling expense ....................................33,800
Raw materials, January 1, 2015 .......................................122,350
Raw material, December 31, 2015 .................................242,000
Maintenance Factory Overhead ....................................34,500
Goods in process, January 1, 2015 ..................................18,300
Sales .....................................................................................3,879,000
Goods in process, December 31, 2015 ..........................17,080
Finished goods, January 1, 2015 .....................................142,500
Sales salary expense .........................................................282,160
Finished goods, December 31, 2015 ..............................166,000
Required:
1. Prepared the 2015 cost of goods manufacturing statement for the company.
2. Prepared the 2015 Income statement for the company.