Question

Required information Exercise 2-28 Schedules of Cost of Goods Manufactured and Sold; Income Statement (LO 2-1, 2-3, 2-6) [The following information applies to the questions displayed below.j Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1 December 31 20x1 $ 70,000 Inventory January 1, 20x1 Classification Raw material Work in process 60,000 20,000 115,000 Finished goods 140,000 165,000 During 20x1, the company purchased $240,000 of raw material and spent $400,000 for direct labor. Manufacturing overhead costs were as follows $12,000 Indirect material Indirect labor Depreciation on plant and 24,000 100,000 24,000 equipment Utilities Other 30,000 Sales revenue was $1,108,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent.

Answer 1

	Schedule of Cost of goods manufactured
	Direct material:
	Raw materials,beginning				60,000
	cost of raw materials purchased				240,000
	total raw materials available				300,000
	less:raw materials ending				70,000
	direct raw materials used					230,000
	Direct labor					400,000
	Manufacturing overhead
	Indirect material				12,000
	Indirect labor				24,000
	Depreciation on plant and Equipment				100,000
	Utilities				24,000
	other				30,000
	total manufacturing overhead					190,000
	total manufacturing costs					820,000
	Work in process,beginning					120,000
	subtotal					940,000
	Work in process,ending					115,000
	cost of goods manufactured					825,000