Question

The following data pertain to Babor Company for the fiscal year ended December 31: Prior December 31 Purchases of materials Direct labor 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 Current December 31 $ 165,000 114,000 45,000 8,000 33,000 11,000 144,000 86,000 55,000 16,000 24,000 $ 23,000 13,000 17,000 Sales in the current year were $625,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Babor Company. Complete this question by entering your answers in the tabs below. Stmt of COGM Income Statement Prepare a schedule of cost of goods manufactured for the current year for Babor Company . < Prey 11 of 11 Next

Answer 1

Babor Company
Statement of cost of goods manufactured
For the year ended december 31
Direct Material:
Opening material inventory	23,000
Purchase of material	165,000
Material available	188,000
Less: Closing material inventory	(55,000)
Material used	133,000	133,000
Factory Overhead:
Direct labor	114,000
Indirect labor	45,000
Factory insurance	8,000
Depreciation- Factory	33,000
Repair and maintanance- Factory	11,000
Total factory overhead	211,000	211,000
Total manufacturing cost		344,000
Total manufacturing cost to account for		344,000
Add: Opening work-in-process inventory		13,000
Less: Closing work-in-process inventory		(16,000)
Cost of goods manufactured		341,000

Babor Company
Income Statement
For the year ended december 31
Sales		625,000
Cost of goods sold:
Opening finished goods inventory	17,000
Cost of goods manufactured	341,000
Cost of goods available for sale	358,000
Less: Closing finished goods inventory	(24,000)
Cost of goods sold	334,000	(334,000)
Gross profit		291,000
Total selling and administrative expenses:
Marketing expenses	144,000
General and administrative expenses	86,000
Total selling and administrative expenses	230,000	(230,000)
Net Income		61,000