The following data refer to San Fernando Fashions Company for the year 20x2 Sale

Question

The following data refer to San Fernando Fashions Company for the year 20x2 Sales revenue Work-in-process inventory, December 31 Work-in-process inventory, January 1 Selling and administrative expenses Income tax expense Purchases of raw material Raw-material inventory, December 31 Raw-material inventory, January 1 Direct labor Utilities: plant Depreciation: plant and equipment Finished-goods inventory, December 31 Finished-goods inventory, January 1 Indirect material Indirect labor Other manufacturing overhead 30,ee0 36,880 15e,eee 80,e00 180,e0e 25,e00 20,eee 180,ee 48,ee0 50,8e0 se,000 10,ee0 10,000 15,eee 60,e00 3. Prepare San Fernando Fashions' income statement for the year. SAN FERNANDO FASHIONS COMPANY Income Statement For the Year Ended December 31, 20x2

Explanation / Answer

Calculate following

Manufacturing overhead = 40000+50000+10000+15000+60000 = 175000

Direct material used = (20000+180000-25000-10000) = 165000

Cost of goods manufactured = 36000+165000+180000+175000-30000 = 526000

Cost of goods sold = 10000+526000-50000 = 486000

Prepare income statement :

Sales 1000000 Cost of goods sold (486000) Gross profit 514000 Selling and administrative expense (150000) Income before tax 364000 Less: Income tax (80000) Net income 284000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.