Question

2. New Orleans Corporation had the following data Inventories Materials Work-in-Process Finished Goods 1/1/2020 12/31/2020 351,000 436,800 631,800 592,800 608,400 576,000 Advertising Expense Depreciation Expense- Factory Equipment Depreciation Expense-Office Equipment Direct labor Heat, Light, Power-factory Indirect Labor Materials Purchased Office Salaries Expense Property Taxes - Factory Property Taxes Factory - Office Building Rent Expense- Factory Sales Sales salaries expense Supplies Factory Miscellaneous costs-factory 296,400 42,120 56,160 670,800 22,460 78,750 659,800 185,000 18,500 32,400 32,000 3,010,000 420,000 15,400 9,500 Prepare : Detailed Income Statement

Answer 1

Amount 659 doo 670800 1330, 60o Income Statement of New Orleans Corporation Particulers Direct Matend purchased Rirect Labour Prime Losts Add: fectory costs Heat Light, lower factory Indirect Labour Property Toxes - Factory Rent T estabenses- factory Supplies -factory Miscellaneous costs- factory Debreciation Expenses - factory Equipment 22460 78,750 18, Soo 32,000 15,400 9.500 42 120 1549 350 9591,200 Add: opening Inventories Materials 35,000 Work in Process 631,800 finished Goods 608 400 Less! Closing Inventories Motherids e n 436,800 Work in Process a 592,800 finished foods 576,000 Cost of Production Add: selling, advertisement & office expenses Advertising Expense Depreciation Expense - Office Equipment office salaries Expense Property Taxes factory - Office Building 160s, boo) 1534,930 296, 400 56,160 185,ooo 32400

420,000 sales salaries expenses - Cost of goods sold (a) Sales 2524,890 30,10,000 Net Income [(b) -(a)] 485, 10