1) prepare costs of golds sold statement 2) Prepare income statement Wonderland
ID: 2578703 • Letter: 1
Question
1) prepare costs of golds sold statement
2) Prepare income statement
Wonderland Production House has provided the following account balances for the Year ending Dec 31st 2016 Production repairs Sales Factory rent Interest and tax Office safety and securit Salespersons' con 9,340 250,000 3,950 5.760 2,200 2.400 52.800 24,720 27,000 18.480 11,080 6,000 vehicle costs reciation of production equipment reciation of office equipment Miscellaneous production overhead Production ulities General office administration expenses Selling and distribution costs Beginning Work-in-process inventory Ending Work-in-process inventory Beginning Finished goods inventory Ending Finished goods inventory Direct materials used Indirect materials Direct labor Indirect labor 18,080 34.200 98.000 62,000 75,600 16,800 96,000 37,200Explanation / Answer
1.
Cost of goods sold statement will be prepared as follows:
2.
Income statement will be prepared as follows:
Waterland Production House Cost of Goods Sold Statement For the Year Ended December 31, 2016 Direct materials used 75600 Direct labor 96000 Factory Overhead: Indirect material 16800 Indirect labor 37200 Production utilities 18480 Miscellaneous production overhead 27000 Depreciation of production equipment 52800 Factory rent 3950 Production repairs 9340 Total factory overhead 165570 Current manufacturing costs 337170 Add: Beginning work-in-process inventory 18080 Total maunfacturing costs 355250 Less: Ending work-in-process inventory 34200 Cost of goods manufactured 321050 Add: Beginning finished goods inventory 98000 Total goods available for sale 419050 Less: Ending finished goods inventory 62000 Cost of goods sold 357050Related Questions
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