Question

The following data pertain to Babor Company for the fiscal year ended December 31: Prior 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 Current December 31 $ 177,500 120,250 47,5ee 8,500 34,25e 12,500 125,750 86,750 58,750 17,000 24,400 $ 25,500 14,250 17,500 Sales in the current year were $596,000. Required: Prepare a schedule of cost of goods manufactured and an income staterhent for the current year for Babor Company Complete this question by entering your answers in the tabs below. Stmt of COGM Income Statement Prepare a schedule of cost of goods manufactured for the current year for Babor Company

Answer 1

Statement of cost of goods manufactured Direct materials: Beginning materials Inventory $ 25,500 Raw materials purchases $ 1,77,500 Materials available $ 2,03,000 Less:ending materials inventory $ -58,750 Direct materials used $ 1,44,250 Direct labour used $ 1,20,250 Factory overhead Indirect labour $ 47,500 Factory insurance $ 8,500 Depreciation - Factory $ 34,250 Repairs&mainteance-factory $ 12,500 Total factory overhead $ 1,02,750 Total manufacturing costs $ 3,67,250 Add:Beginning work in process Inventory $ 14,250 Total manufactuirng costs to account for $ 3,81,500 Less:ending work in process inventory $ -17,000 Cost of goods manufactured $ 3,64,500 A A A A $ 5,96,000 17,500 3,64,500 3,82,000 -24,400 Income statement Sales Cost of goods sold Finished goods Inventory $ Add:Cost of good manufactured $ Cost of goods available for sale $ Less:Ending Finished goods $ Cost of goods sold Gross Profit Operating expenses Marketing expenses $ General and admini expenses $ Total selling & administrative expenses Net Income $ $ 3,57,600 2,38,400 1,25,750 86,750 $ $ 2,12,500 25,900