a) Prepare the schedule of cost of goods manufactured for Nani’s fashion. (3 marks) b) Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information provided by the schedule of cost of goods sold. (4 marks) c) Prepare an income statement for the current year.
The questions to be answered are:
Week 1
The following data refer to Nani’s Fashions for the current year:
Sales Revenues $475,000
Work in process inventory, 31 December 15,000
Work in process inventory, 1 January 20,000
Selling and administrative expenses 75,000
Income tax expense 45,000
Purchase of raw materials 90,000
Raw materials inventory, 31 December 12,500
Raw material inventory. 1 January 20,000
Direct labour 100,000
Electricity: plant 20,000
Finished goods inventory, 31 December 25,000
Finished goods inventory, 1 January 10,000
Indirect material 5,000
Indirect labour 7,500
Other manufacturing
Required:
a) Prepare the schedule of cost of goods manufactured for Nani’s fashion. (3 marks)
b) Prepare the schedule of cost of goods sold for Nani’s Fashions and explain the information
provided by the schedule of cost of goods sold. (4 marks)
c) Prepare an income statement for the current year.
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