Madison Company has the following information available: Cost Amount Cost Amount

Question

Madison Company has the following information available: Cost Amount Cost Amount Depreciation Factory Equipment 4,000 15,550 50,000 120,000 2,000 3,800 62,300 17,775 Factory Utilities 3,000 Factory Maintenance 1,100Indirect Labor 48,990 Direct Labor Wages 14,000 98,000 Supervisor's Sal Direct Material Purchases Depreciation-Office Sales Commissions President's Salary Office Utilities Accounts Receivable Office Salaries ent 1,500 Factory Insurance 12,500 Cash 15,650 Factory Rent Other information includes: Inventory Beginning Ending Raw Materials Work In Process Finished Goods 36,800 52,500 70,250 62,750 86,210 89,680 Instructions: a. b. c. Prepare a Cost of Goods Manufactured Schedule Prepare an Income Statement (Net Sales = $420,000) Prepare a current assets section of the balance sheet

Explanation / Answer

Prepare cost of goods manufactured schedule :

Prepare income statement :

c) Current asset section of the balance sheet ;

Direct material used Beginning raw material 36800 Raw material purchase 120000 Less; Ending raw material (62750) 94050 Direct labour 50000 Factory overhead : Factory rent 17775 Factory utilities 3000 Factory maintenance 1100 Production supervisor's salary 48990 Depreciation equipment 4000 Indirect labour 15550 Factory insurance 3800 94215 Total manufacturing cost 238265 Beginning work in process 52500 Total cost of work in process 290765 Less: Ending work in process (86210) Cost of goods manufactured 204555

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