Problem

Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income StatementThe follow...

Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

The following data from the just completed year are taken from the accounting records of Eccles Company:

Sales

$643,000

Direct labor cost

$90,000

Raw material purchases

$132,000

Selling expenses

$100,000

Administrative expenses

$43,000

Manufacturing overhead applied to work in process

$210,000

Actual manufacturing overhead costs

$220,000

Inventories:

Beginning of Year

End of Year

Raw materials

$8,000

$10,000

Work in process

$5,000

$20,000

Finished goods

$70,000

$25,000

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold.

3. Prepare an income statement.

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Solutions For Problems in Chapter 3