Question

The following data refer to Mister Munchie, Inc. for the year 20x4.

Work-in-process inventory, 12/31/x3	$	8,000
Selling and administrative salaries		13,700
Insurance on factory and equipment		3,600
Work-in-process inventory, 12/31/x4		8,200
Finished-goods inventory, 12/31/x3		14,000
Indirect material used		4,600
Depreciation on factory equipment		2,100
Raw-material inventory, 12/31/x3		10,100
Property taxes on factory		2,400
Finished-goods inventory, 12/31/x4		15,200
Purchases of raw material in 20x4		39,200
Utilities for factory		6,000
Cash, 12/31/x4		7,000
Utilities for sales and administrative offices		2,500
Other selling and administrative expenses		4,000
Indirect-labor cost incurred		29,000
Depreciation on factory building		3,600
Depreciation on cars used by sales personnel		1,200
Direct-labor cost incurred		79,000
Raw-material inventory, 12/31/x4		11,000
Rental for warehouse space to store raw material		3,000
Rental of space for company president’s office		1,600
Applied manufacturing overhead		58,000
Sales revenue		207,800
Income tax expense		5,100
Accounts receivable, 12/31/x4		4,000

Required:
1.	Prepare Mister Munchie’s schedule of cost of goods manufactured for 20x4.

MISTER MUNCHIE, INC Schedule of Cost of Goods Manufactured For the Year Ended December 31, 20x4 Direct material: Raw-material inventory, 12131/x3 Raw material used Direct labor Manufacturing overhead: Total actual manufacturing overhead Overhead applied to work in process Total manufacturing costs Subtotal Cost of goods manufactured

2.	Prepare the company’s schedule of cost of goods sold for 20x4. The company closes overapplied or underapplied overhead into Cost of Goods Sold.

3.	Prepare the company’s income statement for 20x4.

Answer 1