Question

L.O. 2. 4) 2-48. Prepare Statements for a Prepare Statements for a Manufacturing Company The administrative offices and manufacturing plant of Oakdale Tool & Die share the same build- ing. The following information (in $000s) appears in the accounting records for last year: $ 4,800 2,700 3,750 2,520 42 Administrative costs ......... Building and machine depreciation (75% of this amount is for factory).. Building utilities (90% of this amount is for factory) Direct labor.... Direct materials inventory, December 31 .. Direct materials Inventory, January 1.. Direct materials purchases......... Factory supervision ...... Finished goods inventory, December 31 .. Finished goods inventory, January 1 .. Indirect factory labor. .......... Indirect materials and supplies....... Marketing costs ...... Property taxes on building (80% of this amount is for factory) ...... Sales revenue .................... Work-in-process Inventory, December 31 .... Work-in-process Inventory, January 1 ...... 36 10,950 1,470 195 162 2,736 2,055 2,613 2,520 38,910 Required Prepare an income statement with a supporting cost of goods sold statement.

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

8 Part 1) 1 Amount 38910 27119 11791 Onkdlae Tool & Die Income Statement For the year ended December 31 2 Particulars 3 Sales 4 Cost of goods sold 5 Gross Margin 6 Less adminstrative and selling expenses 7 Adminstrative cost 8 Building depreciation (2700*25%) 9 Building utilities (3750*10%) o Marketing cost 1 Property taxes on building (2520*20%) 2 Net Operating income 4800 2813 504 9167 2624

36 10950 42 5 Part 3) Onkdlae Tool & Die Statement of cost of goods sold For the year ended December 31 Direct Material Used 1 Beginning inventory 2 Purchases 3 Total raw material available for use + Less ending inventory 5 Direct Labour 5 Manufacturing overheads 7 Machine Depreciation Cost (2700*75%) 3 Factory Utilties (3750*90%) Factory Supervision Indirect Factory Labour | Indirect Material ? Property Taxes (2520*80%O 3 Total manufacturing cost Beginning work in process (718000-675000) 10944 2520 20257 3375 1470 2736 2055 2016 5 Less ending work in process Cost of goods manufactured 3 Beginning Finished Inventory Total goods available for sale ) Less Ending finished goods Cost of goods sold 13677 27141 98 27239 87 27152 162 27314 195 27119