Question

Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1 Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 60,000 120,000 170,000 December 31, 20x1 $ 70,000 115,000 165,000 During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material Indirect labor Depreciation on plant and equipment Utilities Other $ 8,000 26,000 100,000 25,000 30,000 Sales revenue was $1,107,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. 2. Prepare a schedule of cost of goods sold ALEXANDRIA ALUMINUM COMPANY Schedule of Cost of Goods Sold For the Year Ended December 31, 20x1 $ 170,000 Finished-goods inventory, January 1 Add: Cost of goods manufactured Cost of goods available for sale Less: Finished-goods inventory, December 31 Cost of goods sold

Required information

[The following information applies to the questions displayed below.]
Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.

Inventory Classification	January 1, 20x1				December 31, 20x1
Raw material	$	60,000			$	70,000
Work in process		120,000				115,000
Finished goods		170,000				165,000

During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:

Indirect material	$	8,000
Indirect labor		26,000
Depreciation on plant and equipment		100,000
Utilities		25,000
Other		30,000

Sales revenue was $1,107,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm’s tax rate is 40 percent.

2. Prepare a schedule of cost of goods sold.

Answer 1