Question

Urgent need help ...please read the below Case and answer the required questions

The following data pertain to Babor Company for the fiscal year ended December 31: Prior Current December 31 December 31 $ 212,500 Purchases of materials Direct labor 137,750 54,500 9,900 37,750 16,700 150,650 88,850 69,250 19,800 24,400 Indirect labor Factory insurance Depreciation-factory Repairs and maintenance-factory Marketing expenses General and administrative expenses Materials inventory Work-in-Process inventory Finished Goods inventory $ 32,500 17,750 18,900 Sales in the current year were $708,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Babor Company.

Answer 1

Babor Company Schedule of Cost of Goods Manufactured For The Month ended December 31 Direct Material :- Beginning Inventory of Raw Material $ 32,500 Material purchased $ 212,500 Raw material Available for use $ 245,000 Ending Inventory of Raw Material $ 69,250 Direct Material used in production Add less 175,750 Direct Labor 137,750 $ $ $ $ 54,500 9,900 37,750 16,700 Factory Overhead: Indirect Labor Factory Insurance Depriciation - Factory Repair & Maintenance - Factory Total Factory Overhead cost Total Manufacturing cost Beginning Work in Process Total manufacturing cost to account for Ending Work in Process Cost of Goods Manufactured $ Add 118,850 432,350 DM + DL + OH 17,750 450,100 19,800 430,300 less $ $ $ $ 708,000 Add Babor Company Income Statement For The Month ended December 31 Net Sales Cost of Goods Sold :- Beginning Inventory of Finished Goods $ 18,900 Cost of Goods Manufactured $ 430,300 Cost of Goods available for Sale $ 449,200 Ending Inventory of Finished Goods $ 24,400 Cost of Goods Sold Gross Profit Selling & Administrative Expenses:- Marketing Expense $ 150,650 General & administrative Expenses $ 88,850 Total Selling & Administrative Expense Net Operating Income Less $ $ 424,800 283,200 Sales - COGS Less $ $ 239,500 43,700