Question

Required information The following selected account balances are provided for Delray Mfg. $ Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases Direct labor Factory supplies used (indirect materials) Indirect labor Repairs-Factory equipment Rent cost of factory building Advertising expense General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending 1,153,000 42,000 55,500 64,200 158,600 226,000 16,800 54,000 5,250 56,000 87,000 128,000 44,400 39,600 70,400

thanks

Answer 1

Delray Mfg. Income Statement For the year ended December 31, Year 1
Sales		$ 1,153,000
Cost of Goods Sold
Finished Goods Inventory, beginning	$ 64,200
Cost of Goods Manufactured	530,150
Cost of Goods Available for Sale	594,350
Less: Finished Goods Inventory, ending	(70,400)
Cost of Goods Sold		523,950
Gross Profit		629,050
Operating Expenses
Advertising Expenses	87,000
General and Administrative Expenses	128,000
Total Operating Expenses		215,000
Operating Income		$ 414,050