Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000). Inventory information:1/1/0012/31/00Direct materials$96$110Work-in-process152136Finished goods1,9742,026 Other information:For the year ’00Administrative costs$4,200Depreciation (Factory)5,560Depreciation (Machines)9,240Direct labor13,000Direct materials purchased10,300Indirect labor (Factory)3,340Indirect materials (Factory)960Property taxes (Factory)370Selling costs2,140Sales revenue60,220Utilities (Factory)1,060 Required:1. Prepare a cost of goods sold statement.2. Prepare an income statement.

COST OF GOODS SOLD Cost of goods sold (COGS) refers to the direct costs of producing the goods sold…

Answered: Mesa Designs produces a variety of…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 16E: Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels...

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Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job interview as a summer intern at Mesa, the cost accountant provides you with the following (fictitious) data for the year (in $000).

Inventory information:	1/1/00	12/31/00
Direct materials	$96	$110
Work-in-process	152	136
Finished goods	1,974	2,026

Other information:	For the year ’00
Administrative costs	$4,200
Depreciation (Factory)	5,560
Depreciation (Machines)	9,240
Direct labor	13,000
Direct materials purchased	10,300
Indirect labor (Factory)	3,340
Indirect materials (Factory)	960
Property taxes (Factory)	370
Selling costs	2,140
Sales revenue	60,220
Utilities (Factory)	1,060

Required:

1. Prepare a cost of goods sold statement.

2. Prepare an income statement.

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