Question

Required information [The following information applies to the questions displayed below.] The following data refer to Twisto Pretzel Company for the year 20x1. Work-in-process inventory, 12/31/x0 Selling and administrative salaries Insurance on factory and equipment Work-in-process inventory, 12/31/xl Finished-goods inventory, 12/31/x0 Cash balance, 12/31/x1 Indirect material used Depreciation on factory equipment Raw-material inventory, 12/31/x0 Property taxes on factory Finished-goods inventory, 12/31/x1 Purchases of raw material in 20x1 Utilities for factory Utilities for sales and administrative offices Other selling and administrative expenses Indirect-labor cost incurred Depreciation on factory building Depreciation on cars used by sales personnel Direct-labor cost incurred Raw-material inventory, 12/31/x1 Accounts receivable, 12/31/x1 Rental for warehouse space to store raw material Rental of space for company president's office Applied manufacturing overhead Sales revenue Income tax expense $ 8,100 13,700 3,600 8,300 14,000 7,000 4,900 2,100 10,200 2,400 15,200 38,800 6,000 2,400 4,000 29,000 3,800 1,200 79,000 11,000 4,200 3,000 1,600 58,000 205,800 5,100

2..

Answer 1

Schedule of Cost of goods manufactured
Direct Material:
Raw materials inventory,12/31/X0					10,200
Add:purchase of raw materials					38,800
Raw materials available for use					49,000
Deduct:Raw-Material inventory,12/31/X1					11,000
Raw Material used						38,000
Direct labor						79,000
Manufacturing overhead:
Indirect Material					4,900
Indirect Labor					29,000
Depreciation on factory building					3,800
Depreciation on factory equipment					2,100
Utilities					6,000
property taxes					2,400
insurance					3,600
Rental of warehouse space					3,000
total actual manufacturing overhead					54,800
Add:over applied overhead					3,200
overhead applied to work in process						58,000
total manufacturing costs						175,000
Add:Work in process inventory ,12/31/X0						8,100
Subtotal						183,100
Deduct :Work in process inventory ,12/31/X1						8,300
cost of goods manufactured						174,800
schedule of cost of goods sold
Finished goods inventory,12/31/X0						14,000
Add: cost of goods manufactured						174,800
cost of goods available for sale						188,800
Deduct:Finished goods inventory ,12/31/X1						15,200
Cost of goods sold						173,600
Deduct:over applied overhead						3,200
cost of goods sold						170,400
Income statement
Sales revenue						205,800
less:cost of goods sold						170,400
Gross margin						35,400
Selling and administrative expenses
Salaries					13,700
utilities					2,400
Depreciation					1,200
Rental of office space					1,600
other expenses					4,000
total						22,900
income before taxes						12,500
income tax expense						5,100
net income						7,400