The following selected account balances are provided for Delray Mfg. Sales $ 1,2

Question

The following selected account balances are provided for Delray Mfg. Sales $ 1,234,000 Raw materials inventory, Dec. 31, 2016 37,000 Work in process inventory, Dec. 31, 2016 51,800 Finished goods inventory, Dec. 31, 2016 69,900 Raw materials purchases 180,200 Direct labor 241,000 Factory computer supplies used 16,500 Indirect labor 46,000 Repairs—Factory equipment 5,250 Rent cost of factory building 57,000 Advertising expense 97,000 General and administrative expenses 132,000 Raw materials inventory, Dec. 31, 2017 45,500 Work in process inventory, Dec. 31, 2017 47,000 Finished goods inventory, Dec. 31, 2017 74,400

Explanation / Answer

STEP - 1 PREPARE SCHEDULE OF COST OF GOODS MANUFATCURE

STEP - 2 PREPARE INCOME STATEMENT

Direct Materials Raw material Inventory 12/31/16 37000 Add: Raw material Puchased 180200 Raw material available for use 217200 Less: Raw material Inventory 12/31/17 45500 Direct materials used 171700 Direct labor 241000 Factory overhead Factory computer supplies used 16500 Indirect labor 46000 Repairs - Factory 5250 Rent - Factory 57000 Total factory overhead costs 124750 Total manufacturing costs 537450 Add: Work in process Inv   12/31/16 51800 Total cost of work in process 589250 Less: work in process inventory 12/31/17 47000 Cost of goods manufactured 542250

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