2-3. Income statement. Morimatsu, Inc., produces a household appliance that sells for $90. The basic patent is held by the inventor, who is paid a royalty of $5 on each unit sold. The royalty is considered a marketing expense. The data taken from the books and other records of the company on December 31, 19--, are- shown below and on the following page: Inventories: JANUARY 1 DECEMBER 31 Finished goods. Work in process Materials. $4,584 8,159 3,420 $. 7,518 4,002 7,130 Sales.. $387,000 90,563 Materials purchased Freight in Direct labor. Indirect labor Depreciation -tactory equipment Miscellaneous factory overhead Rent .. Sales salaries.. Royalties paid Freight out Miscellaneous marketing expenses Ofice salaries 477 62,522 5,026 2,135 17,908 5,000 28,000 21,500 1,860 11,380 24,790
2-3. Income statement. Morimatsu, Inc., produces a household appliance that sells for $90. The basic patent is held by the inventor, who is paid a royalty of $5 on each unit sold. The royalty is considered a marketing expense. The data taken from the books and other records of the company on December 31, 19--, are- shown below and on the following page: Inventories: JANUARY 1 DECEMBER 31 Finished goods. Work in process Materials. $4,584 8,159 3,420 $. 7,518 4,002 7,130 Sales.. $387,000 90,563 Materials purchased Freight in Direct labor. Indirect labor Depreciation -tactory equipment Miscellaneous factory overhead Rent .. Sales salaries.. Royalties paid Freight out Miscellaneous marketing expenses Ofice salaries 477 62,522 5,026 2,135 17,908 5,000 28,000 21,500 1,860 11,380 24,790
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter27: Adjustments, Financial Statements, And Year-end Accounting For A Manufacturing
business
Section: Chapter Questions
Problem 1MP: Reese Manufacturing Company manufactures and sells a limited line of products made to customer...
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