Question

10 Problem 3-55 Cost of Goods Manufactured; Income Statement [LO 3-4] The following data pertain to Babor Company for the fiscal year ended December 31: 0.5 points Prior December 31 Current Skipped 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 187,500 125,250 49,500 8,900 35,250 13,700 147,150 87,350 61,750 17,800 24,400 eBook Print $27,500 15,250 17,900 References Sales in the current year were $628,000. 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 Income stmt of COGMStatement Prepare a schedule of cost of goods manufactured for the current year for Babor Company Babor Company Statement of Cost of Goods Manufactured For the Year Ended December 31 Direct materials Materials available Direct materials used Factory overhead

Answer 1

Schedule of cost of goods manufactured

Direct materials
Beginning direct material	27500
Purchase of materials	187500
Materials available	215000
Less: Ending direct material	-61750
Direct material used		153250
Direct labor		125250
Factory overhead
Indirect labor	49500
Factory insurance	8900
Depreciation-factory	35250
Repairs and maintenance-Factory	13700
Total factory overhead		107350
Total manufacturing cost		385850
Beginning Work in process		15250
Total manufacturing cost to account for		401100
Less: Ending Work in process		-17800
Cost of goods manufactured		383300

Income statement

Sales revenue		628000
Cost of goods sold
Beginning finished goods	17900
Cost of goods manufactured	383300
Cost of goods available for sale	401200
Less: Ending finished goods	-24400
Cost of goods sold		376800
Gross profit		251200
Selling and administrative expense
Marketing expense	147150
General and administrative expense	87350
Total selling and administrative expense		234500
Net operating income		16700