Question

Problem 3 (Textbook Reference: P2-3)- Preparestatement of costs of goods manufactured and an income statement Good Vibrations, Inc., produces recordings of musical performances. A newly hired executive of the company has asked you to sort through the records and prepare a statement of the company's cost of goods manufactured. You find the following data from records prepared by Good Vibrations, Inc., for the year ended December 31,2013 Beginning Direct Materials Inventory, January 1, 2013 6,000 Ending Direct Materials Inventory, December, 31, 2013 S10,500 Beginning Work in Process Inventory, Jauary 1,2013 $10,000 Ending Work in Process Inventory, December 1, 2013 9,500 Materas Purchases Drect Labor Ind irect Labor Factory Utilties Expense $ 50,000 $40,000 $ 15,000 7,000 5,000 $ 14,000 $ 10,500 $25,000 $76,500 Factory Supp ies Expense Deprecation Expense Factory Buiding Deprecation Expense- Factory Equipment Other Maufacturing Overhead Appled Manufacturing Overhead You also learn that Beginning Finished Goods Inventory on January, 2013, was S20,000 and Ending Finished Goods Inventory on December 31, 2013, was $5,000. Sales for the year were S400,000. Selling expenses were $50,000 and administrative expenses were $75,000. Required a. Prepare a statement of cost of goods manufactured for Good Vibrations, Inc., for the year ended December 3, 2013 (Hint: Use the space below to recreate the T-Account Template we made together in class) b. Prepare an income statement for Good Vibrations, Inc, for the year ended December 31, 2013 *Templates for (a) and (b) have been provided on the next page*

Answer 1