4. The following information has been taken from the accounting records of Manufacturing company for year December, 2019: Particulars Amount Raw materials inventory, January 1 $500,000 Raw materials inventory, December 31 50,000 Selling expenses 50,000 Utilities, factory 50,000 Direct labor cost 100,000 Depreciation, factory 120,000 Purchase of raw materials 2,500,000 Sales 5,000,000 Insurance, factory 50,000 Supplies, factory 20,000 Administrative expenses 150,000 Indirect labor 200,000 Maintenance, factory 100,000 Work in progress inventory, January 1 150,000 Work in progress inventory, December 31 100,000 Finished goods inventory, January 1 250,000 Finished goods inventory, December 31 150,000 Management wants these date organized in a better format so that financial statements can be prepared for the year. Required: Prepare a schedule of cost of goods manufactured. Prepare the cost of goods sold Prepare a pro forma income statement for December, 2019.
Q3) 4. The following information has been taken from the accounting records of Manufacturing company for year December, 2019:
|
Particulars |
Amount |
|
Raw materials inventory, January 1 |
$500,000 |
|
Raw materials inventory, December 31 |
50,000 |
|
Selling expenses |
50,000 |
|
Utilities, factory |
50,000 |
|
Direct labor cost |
100,000 |
|
|
120,000 |
|
Purchase of raw materials |
2,500,000 |
|
Sales |
5,000,000 |
|
Insurance, factory |
50,000 |
|
Supplies, factory |
20,000 |
|
Administrative expenses |
150,000 |
|
Indirect labor |
200,000 |
|
Maintenance, factory |
100,000 |
|
Work in progress inventory, January 1 |
150,000 |
|
Work in progress inventory, December 31 |
100,000 |
|
Finished goods inventory, January 1 |
250,000 |
|
Finished goods inventory, December 31 |
150,000 |
Management wants these date organized in a better format so that financial statements can be prepared for the year.
Required:
- Prepare a schedule of cost of goods manufactured.
- Prepare the cost of goods sold
- Prepare a pro forma income statement for December, 2019.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
