Question

QUESTION #1 Use the following information to pr Inverness Industries and a corresponding classified incom December 31", 2021. ca cost of goods manufactured statement for ding classified income statement for the year ended BALANCE $13,500 255,000 9,175 94,560 23,625 ACCOUNTS Factory Utilities Direct Labour Freight on Raw Materials Income Tax Expense Indirect Labour Inventories: Raw Materials, Jan 1 Raw Materials, Dec 31 Goods in Process, Jan 1 Goods In Process, Dec 31 Finished Goods, Jan 1 Finished Goods, Dec 31 Misc. Production Costs Office Salaries Expense Raw Materials Purchases Rent Expense, Office Space Rent Expense, Selling Expense Rent on Factory Building Repairs to Production Equipment | Sales Sales Discounts Sales Salaries Expense Factory Supervision Advertising Expense Depreciation Expense, Machinery Depreciation Expense, Office Equipment Depreciation on Selling Equipment Factory Supplies Used 74,625 64,000 51,650 50,125 70,800 56,700 3,375 28,350 347,625 9,450 10,800 32,400 12,300 1,312,675 23,350 118,125 48,600 8,100 14,175 3,375 4,050 7,425

Answer 1

Inverness Industries Statement of Cost of Goods Manufactured For the Year Ended December 31, 2021. Particulars Amount Amount Raw Materials used Beginning Raw material $ 74,625 Add: Raw Material Purchases $ 347,625 Add : Frieght on Raw materials $ 9,175 Less : Ending Raw material $ (64,000) Raw Materials used $ 367,425 Direct Labour cost $ 255,000 Manufacturing Overhead Factory utilities $ 13,500 Indirect Labour $ 23,625 Misc. production costs $ 3,375 Rent on factory building $ 32,400 Repairs to production equipment $ 12,300 Factory supervision $ 48,600 Depreciation expense machinery $ 14,175 Factory Supplies used $ 7,425 Total Manufacturing Overhead $ 155,400 Total Manufacturing Cost $ 777,825 Add: Working In Progress January 1 $ 51,650 Less : Working In Progress December 31 $ (50,125) Cost of Goods Manfactured $ 779,350

Inverness Industries Income Statement for the year ended December 31, 2021 Particulars Amount Amount $ S 1,312,675 (23,350) $ 1,289,325 $ $ $ 779,350 70,800 (56,700) $ (793,450) $ 495,875 Sales Less: Sales Discounts Net Sales Less : Cost of Goods Sold Cost of Goods Manfactured Add : Beginning Finished Goods Less : Ending Finished Goods Cost of Goods Sold Gross Profit Less : Selling & administrative expenses Office salaries expenses Rent expense, office Space Rent expense, Selling expense Sales Salaries expenses Advertising expense Depreciation expense, office equipment Depreciation expense, selling equipment Total Operating expenses Operating income before tax Less : Income tax expense Net Income $ $ $ $ $ $ s (28,350) 9,450) (10,800) (118,125) (8,100) (3,375) (4,050) $ (182,250) $ 313,625 $ (94,560) $ 219,065 Activate inda