Question

The Rogue River Manufacturing Company The following information was taken from the year-end Adjusted Trial Balance of the Rogue River Manufacturing Company: + Manufacturing Accounts: Materials Inventory - Resin A, January 1 Materials Inventory - Resin A, December 31 Materials Inventory - Hardener Q, January 1 Materials Inventory - Hardener Q, December 31 Work in Process Inventory, January 1 Work in Process Inventory, December 31 Materials Purchased Cost - Resin A Materials Purchased Cost - Hardener Direct Manufacturing Labor Cost - Dept. A Direct Manufacturing Labor Cost – Dept. B Supervisory Labor Cost Set-up Cost Utility Cost Engineering Cost Fringe Benefit Cost Purchasing Cost Data Entry Cost Depreciation Cost Property Tax Cost Insurance Cost Non-manufacturing Accounts: Notes Payable - Short-term Retained Earnings - January 1 Finished Goods Inventory, January 1 Cash Finished Goods Inventory, December 31 Interest Expense (General & Admin.) Accounts Payable Marketing, Delivery Expense Marketing, Advertising Expense Plant and Equipment Income Tax Payable Accumulated Depreciation Administrative Expense Accounts Receivable Sales Revenue Dividends Declared Common Stock $2,712 3,528 8,000 10,526 20,000 50,000 42,110 178,900 120,317 98,974 900,000 298,222 15,233 40,015 168,213 52,300 10,111 360,000 18,000 60,000 $90,092 658,848 38,555 209,000 46,800 12,200 34,422 327,000 120,000 4,081,000 From Income Statement 900,000 300,000 309.500 3,757,000 300,000 2,650,000

Additional Information:

1. For this project, round to the nearest whole dollar.
2. The income tax rate is 35%.
3. The company uses actual costing

Create a Detailed Income Statement

Answer 1

Closing Balance Sheet
Liabilities	Amount	Assets	Amount
Note Payables	90,092	Inventory - Resin A	3,528
Retained Earnings	11,60,324	Inventory - Hardener Q	10,526
Account Payable	34,422	Work in Progress	50,000
Common Stock	26,50,000	Finished Goods	46,800
Provision for Tax	1,75,516	Cash	2,09,000
		Plant & Machinery	40,81,000
		Acc. Depreciation	(9,00,000)
		Accounts Receivable	3,09,500
		Dividend Declared	3,00,000
TOTAL	41,10,354	TOTAL	41,10,354
Income Statement for the period
Particulars	Amount	Particulars	Amount
Inventory - Resin A	2,712	Sales Revenue	37,57,000
Inventory - Hardener Q	8,000	Inventory - Resin A	3,528
Work in Progress	20,000	Inventory - Hardener Q	10,526
Finished Goods	38,555	Work in Progress	50,000
Material Purchased - Resin A	42,110	Finished Goods	46,800
Material Purchased - Hardener Q	1,78,900
Direct Manufacturing Cost - Dept A	1,20,317
Direct Manufacturing Cost - Dept B	98,974
Supervisory Labour Cost	9,00,000
Set up Cost	2,98,222
Utility Cost	15,233
Engineering Cost	40,015
Fringe Benefit Cost	1,68,213
Purchasing Cost	52,300
Data Entry Cost	10,111
Depreciation	3,60,000
Property Tax Cost	18,000
Insurance Cost	60,000
Interest Expenses	12,200
Delivery Expenses	3,27,000
Advertisement	1,20,000
Administration Expenses	3,00,000
Provision for Tax	1,75,516
Net Profit	5,01,476
TOTAL	38,67,854	TOTAL	38,67,854