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Required information The following selected account balances are provided for Delray Mfg. $1,302,000 41,000 55,900 Sales Raw
Prepare an income statement for Delray Mfg. (a manufacturer). DELRAY MFG. Income Statement For Year Ended December 31, 2017 S
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DELRAY MFG.
Income Statement
For year ended December 31, 2017
Sales 1302000
Cost of goods sold
Finished goods inventory, December 31, 2016 60300
Cost of goods manufactured 537650
Cost of goods available for sale 597950
Less: Finished goods inventory, December 31, 2017 69500
Cost of goods sold 528450
Gross profit 773550
Operating expense
Advertising expense 84000
General and administrative expenses 143000
Total operating expenses 227000
Operating income 546550
Working note :
DELRAY MFG.
Schedule of Cost of goods manufactured
For year ended December 31, 2017
Direct materials
Raw materials inventory, December 31, 2016 41000
Add: Raw materials purchases 160200
Raw materials available for use 201200
Less: Raw materials inventory, December 31, 2017 47600
Direct materials used 153600
Direct labor 238000
Factory overhead
   Factory computer supplies used 18300
   Indirect labor 53000
   Repairs-Factory equipment 5250
   Rent cost of factory equipment 59000
   Total factory overhead costs 135550
Total manufacturing costs 527150
Add: Work in process inventory, December 31, 2016 55900
Total cost of work in process 583050
Less: Work in process inventory, December 31, 2017 45400
Cost of goods manufactured 537650
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