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Requirement 2. Prepare an income statement for Yum Yum Treats for the year ended December 31, 2018. (For accounts with a S0 b
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Yum-Yum Treats
Cost of goods manufactured Amount $
Beginning Raw material inventory         13,700.00
Raw material Purchases         33,000.00
Total Raw material available for use         46,700.00
Less: Ending Raw material inventory            8,500.00
Direct materials used         38,200.00
Direct Labor         22,000.00
Manufacturing Overhead
Plant janitorial Services               400.00
Utilities for plant            1,900.00
Rent on plant         11,000.00
Total Manufacturing Overhead         13,300.00
Total Manufacturing costs         73,500.00
Beginning Work in process inventory                        -  
Total cost of work in process         73,500.00
Less: Ending Work in process inventory            3,000.00
Cost of goods manufactured         70,500.00
Income Statement Amount $ Amount $
Revenue 112,000.00
Cost of goods sold
Beginning Finished goods inventory                        -  
Cost of goods manufactured         70,500.00
Cost of goods available for sale         70,500.00
Less: Finished goods inventory, ending            5,700.00
Cost of goods sold     64,800.00
Gross Profit     47,200.00
Selling & administrative expense
Sales salaries            5,700.00
Delivery costs            1,800.00
Customer service hotline costs            1,400.00
Total Selling & administrative expense        8,900.00
Operating Income     38,300.00
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