Outdoor Home is a manufacturer of backyard and deck furniture. Its products are

Question

Outdoor Home is a manufacturer of backyard and deck furniture. Its products are in high demand and it carries no inventory. Following is a list of selected account balances from its trial balance for the most recent year ended December 31 (in no particular order.) EEB (Click the icon to view the December 31 account balances.) Read the requirements. Requirement 1, 2, 3, and 4. To solve for the amounts required, prepare the income statement for Outdoor Home for the year ended December 31 Outdoor Home Income Statement For the Year Ended December 31 Less: December 31 Account Balances Salaries and wages (for administrative and sales staff)..... . . . . . . . $35,500 Stain (used in manufacturing furniture) Indirect labor costs (wages of maintenance workers in factory) Other manufacturing overhead (includes factory insurance and property taxes). . $ Rent and utilities (for administrative offices) Utility costs (related to factory) Labor costs (wages of carpenters who build furniture) Accounts receivable $ 22,500 9,200 $12,500 Less: .... $36,000 $ 26,900 S 17,200 . ...$57,000 Sales revenues. . ..- - Accounts payable 6,500 Print Done

Explanation / Answer

Outdoor Home Income Statement For the Year Ended December 31 Sales Revenue $250,000 Less : Cost of Goods Sold Stain $13,500 Wood $57,000 Labor Costs $36,000 $106,500 Gross Profit $143,500 Less : Operating Expenses Factory Expenses Indirect Labor costs $22,500 Utility Costs $11,000 Other Manufacturing overhead $9,200 Total Factory Expenses $42,700 Less : Administrative Expenses Salaries and Wages $35,500 Rent and Utilities $12,500 Marketing Costs $17,200 Total Administrative Costs $65,200 Total Operating Expenses $107,900 Net Income $35,600

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