Schedules of Cost of Goods Manufactured and Sold; Income Statement
Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20 × 1.
Inventory | Classification January 1,20 × 1 | December 31,20 × 1 |
Raw material | $ 60,000 | $ 70,000 |
Work in process | 120,000 | 115,000 |
Finished goods | 150,000 | 165,000 |
During 20 × 1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows:
Indirect material | $10,000 |
Indirect labor | 25,000 |
Depreciation on plant and equipment | 100,000 |
Utilities | 25,000 |
Other | 30,000 |
Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent.
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.
4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labor is $390,000 and utilities cost $35,000.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.